Hedge Fund Managers
"Wild swings in share prices have more to do with the 'lemming- like' behavior of institutional investors than with the aggregate returns of the company they own." -- Warren BuffettThe hedge fund community has become the dominant investor over the past two decades. The rewards of differentiated performance, especially in a successful hedge fund, are huge. As a result, the performance pressures are intense. The fear of missing meaningful moves (especially to the upside) make for hedge fund catch-up buying (sometimes oblivious to overall macroeconomic strategy or individual company analysis) similar to what we might have seen over the past few months. History shows that hedge fund managers can get even more emotional than retail investors (though there is less emotion, it seems, when markets drop).