Source: Business Insider
Lori Calvasina of RBC Capital Markets says she’s found a group of stocks that are losing support from hedge funds. Her list of “lead balloons” is made up of the small-company stocks where numerous hedge funds closed out their investments during the fourth quarter. RBC data shows that stocks that have lost a lot of support from those leading investors collectively underperform for years. Visit Business Insider’s homepage for more stories . Getting caught in traffic is as frustrating in investing as it is anywhere else. Lori Calvasina, the head US equity strategist for RBC Capital Markets, may have identified a group of stocks where new investors are at risk of getting jammed as some of Wall Street’s biggest investors head for the exits. Calvasina and her team pored over data from 356 major hedge funds to find the stocks they most frequently exited during the fourth quarter. Based on their performance, she’s collected the least-popular stocks into a list of “lead balloons” — because they’re likely going down.