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The Novus 4C Indices track important hedge fund factors through public equities. See positions, risk & return stats for four meaningful hedge fund factors.

Data Source: 
13F
Update Frequency: 
Quarterly
Novus 4C Indices

When the Laggard Leads

March 3, 2022

The Novus Concentration Index has been ticking up while the other 4Cs have been ticking down over the past couple of months. That in itself is kind of surprising. Concentration tracks stocks with the highest percentage of shares held by hedge funds, so it can be a laggard compared to those other indices.

But it has lately compared well not just against Conviction, Consensus, and Crowdedness, but also against the iShares U.S. and world index funds. There’s no magic trick. Apparently, investors like stocks with high-quality earnings, and lately that’s what Concentration has been delivering judging by the P/E ratios which have suddenly surged. Much of this exposure has been to the HealthCare sector.