- 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.
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 houndâ€”their primary concern is fund performance.
Investment dictionary. Academic. 2012.