Hounding Analysts

AAA

DEFINITION of 'Hounding Analysts'

A slang phrase that refers to the relentless phone calls that some hedge fund managers make to analysts in an attempt to persuade the analysts to change their rating on a stock.

INVESTOPEDIA EXPLAINS 'Hounding Analysts'

Hedge fund managers will often call analysts and present a very persuasive argument as to why a stock deserves an upgraded rating. The hounding does not always lead an analyst to change his or her rating, but it works enough of the time for the practice to persist. An upgraded rating usually results in an increase in share price.

Alternatively, hedge funds will often call company executives in an attempt to decipher why a share price is being depressed for seemingly no reason. This shows that some hedge funds are not picky as to who they harass or hound--their primary concern is fund performance.

RELATED TERMS
  1. Analyst

    A financial professional who has expertise in evaluating investments ...
  2. Cold Calling

    The solicitation of potential customers who were not anticipating ...
  3. Hedge Fund

    An aggressively managed portfolio of investments that uses advanced ...
  4. Rating

    1. An evaluation of a corporate or municipal bond's relative ...
  5. Broker

    1. An individual or firm that charges a fee or commission for ...
  6. Dialing and Smiling

    A telemarketing technique in which unsolicited, or "cold" calls, ...
Related Articles
  1. Economics

    Target Prices: The Key To Sound Investing

    Learn how to evaluate the legitimacy of target prices and why investors should trust these over ratings.
  2. Mutual Funds & ETFs

    Taking A Look Behind Hedge Funds

    Hedge funds can draw returns well above the market average even in a weak economy. Learn about the risks.
  3. Options & Futures

    Hedge Funds: Higher Returns Or Just High Fees?

    Discover the advantages and pitfalls of hedge funds and the questions to ask when choosing one.
  4. Options & Futures

    Hedge Funds Hunt For Upside, Regardless Of The Market

    Hedge funds seek positive absolute returns, and engage in aggressive strategies to make this happen.
  5. Retirement

    Stock Ratings: The Good, The Bad And The Ugly

    Stock ratings are both loved and reviled. Find out why they deserve equal measures of both.
  6. Professionals

    Sizing Up A Career As A Ratings Analyst

    This competitive field is lucrative, but do you have what it takes to score this job?
  7. Investing Basics

    The Most Popular Bitcoin Mining Software

    Success at mining bitcoins depends on the combination of time, knowledge, computer hardware and the complementary software.
  8. Mutual Funds & ETFs

    What is the difference between a hedge fund and a private equity fund?

    Learn the primary differences between hedge funds and private equity funds, both of which are utilized by high net worth investors.
  9. Mutual Funds & ETFs

    How do hedge funds determine what assets to own?

    Learn about the various types of investments that hedge fund managers use, and explore basic hedge fund management trading strategies.
  10. With stocks surging, financial advisers and their wealthy clients are asking why they should continue to bother with poorly performing alternatives.
    Professionals

    Are Advisors Off Alternatives?

    With stocks surging, financial advisers and their wealthy clients are asking why they should continue to bother with poorly performing alternatives.

You May Also Like

Hot Definitions
  1. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  2. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  3. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  4. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  5. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  6. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
Trading Center