18% higher share price volatility during earnings reports for European companies due to hedge funds driving short-term money.

European companies face 18% higher share price volatility during earnings reports due to hedge funds driving short-term money into the market, according to a Reuters analysis. This trend, amplified by market structure changes and a decline in traditional buy-and-hold investors, can lead to market inefficiencies and higher investor risks. The growing presence of multi-strategy hedge funds is a significant factor in this trend.