Article posted this morning by Philip van Doorn from MarketWatch citing that:
Credit Suisse has identified the stocks most commonly held by funds – and recommends selling a lot of them
An unfortunate byproduct of the 8.5% decline in the S&P 500 Index this year is that mutual fund managers are forced to sell popular holdings as customers pull money from their funds.
And that can punish stocks indiscriminately, even ones that are widely owned and beloved by individual investors.
SWKS is listed in the mid-cap “darlings” that are most commonly held in mutual funds and ETFs, according to Credit Suisse.
Again, the idea is that as investors withdraw money from mutual funds, fund managers will be forced to sell as prices are falling, with those sales further depressing prices.
Another example of how Saul has pointed out that Mutual Fund manager’s hands are tied in multiple ways to not perform as well as an individual investor.
Looking forward to the earnings after market close this Thursday.