We present a post-sample study of currency fund managers showing thatalpha hunters and especially alpha generators are more effective inproviding diversification benefits for a global equity portfolio thancurrency managers who earn beta returns from popular style strategies ormanagers with high...

"The financial crisis of 2008 highlights the importance of detecting crowded trades due to the risks they pose to the stability of the financial system and to the global economy. However, there is a perception that crowded trades are difficult to identify. To date, no single measure to capture...

Investors and regulators suspect that crowded trades may pose a special risk. The authors propose a methodology to measure crowded trades and apply it to currency managers. This methodology offers useful insights regarding the popularity of certain trades among hedge funds and provides...