As the hedge fund industry matures, crowding is emerging as one of, if not the, most important of investor concerns. With an influx of new investment talent and innovation in information technology, coupled with declining market breadth, alpha is getting squeezed from all directions.

The most forward-looking investors are staying ahead of the trend and away from the herd.

This guide focus on three important aspects of crowding:

1. Why it’s important
2. How to measure it and avoid it
3. How it’s changed in each sector since 2004