Hedge Funds Eat Their Young, Part II

A few people have sent over variants of this after my earlier post about hedge funds’ cannibalism practices, so might as well post it. Here is a graph of the Goldman Sachs VIP index of most widely-held hedge fund positions as it has performed against the S&P 500 over the last few years, and then in the last three months. Think of the cross-over point at the beginning of September as hedgies getting a taste for consuming one another.