Hedge fund Elliott Management is warning investors about a new market mindset it calls FOGO: Fear of Getting Obliterated.
The $80 billion firm flagged the risk as markets push higher despite persistent economic uncertainty.
Elliott posted flat returns in the third quarter, according to the report.
Its gains through September stayed under 2% for the year, trailing broader market advances.
The warning suggests concerns that investors may be underpricing the chance of a sharp downturn.
FOGO echoes the earlier FOMO phenomenon, but frames it around fear of severe losses rather than missed gains.
Elliott’s caution comes as major indexes continue to climb, leaving some managers wary of stretched valuations.
