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Reckoning time for hedge fund trades

Momentum stock trading - a strategy which paid off big in 2015 - blows up in the last three months, posting the worst quarter in six years.

STRETCHED VALUATIONS: JPMorgan says momentum long-short fell 20% this year through mid-March - a rupture comparable to the "quant meltdown" of August 2007, when the unwinding of crowded trades clobbered equity hedge funds and seeped into the broader market.

ONE of the most popular hedge fund trades just hit a wall.

An investment approach that profits from the divergent paths of high and low-momentum stocks over time - a strategy that had one of its biggest gains on record in 2015 - seized up in the last three months, posting the worst...

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