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FRB Washington: Information In Financial Markets: Who Gets It First?

FYI: Abstract
I compare the timing of information acquisition among institutional investors andsell-side analysts, and I show that hedge fund trades predict the direction of subsequentanalyst ratings change reports while other investors’ trades do not. In addition, hedgefunds reverse trades after analyst reports, while other investors follow the analysts.Finally, I show that hedge funds perform best among stocks with high analyst coverage.These results suggest that hedge funds have superior information acquisition skills, andthat analysts assist hedge funds in exploiting information acquisition advantages. Thesedynamics illustrate how hedge funds play an important role in information generati
Regards,
Ted
http://ritholtz.com/2017/04/information-financial-markets-gets-first/
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