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Below we present eight stocks that have been dumped by high-profile hedge funds between 9/30/10 and 12/31/10 (updated 13-F filings will be released over the coming weeks).

These stocks have also seen steep increases in their put/call ratio within the last 10 trading days, to the highest levels of their annual P/C range (i.e. bearish options market positioning).

Do you think this bearishness is extreme? Use this list as a starting-off point for your own analysis.



After testing the performance of this list over the last month, it's worth pointing out that this list of stocks have underperformed the S&P 500 index. To access a complete analysis of this list's recent performance, click here. Here's the chart:



List sorted by increase in put/call ratio.

1. Liberty Starz Group (LSTZA): Entertainment Industry. Market cap of $3.96B. Baupost Group sold its entire common stock position of 1,000,000 shares between 9/30/10 and 12/31/10. Put/Call ratio has increased over the last 10 trading days (from 0.04 to 1.01, which is currently placed at 92% of its annual range). The stock has gained 40.62% over the last year.



2. ING Groep NV (ING): Life Insurance Industry. Market cap of $49.41B. D.E. Shaw & Co. sold its entire common stock position of 63,717 shares between 9/30/10 and 12/31/10. Put/Call ratio has increased 695.56% over the last 10 trading days (from 0.45 to 3.58, which is currently placed at 99% of its annual range). This is a risky stock that is significantly more volatile than the overall market (beta = 2.74). The stock has had a couple of great days, gaining 7.41% over the last week.



3. Tata Motors Ltd. (TTM): Auto Manufacturer. Market cap of $16.16B. Elliott Management Corp. sold its entire common stock position of 223,000 shares between 9/30/10 and 12/31/10. Put/Call ratio has increased 351.16% over the last 10 trading days (from 0.43 to 1.94, which is currently placed at 97% of its annual range). This is a risky stock that is significantly more volatile than the overall market (beta = 2.16). The stock has had a couple of great days, gaining 5.32% over the last week.



4. Wipro Ltd. (WIT): Information Technology Services Industry. Market cap of $36.05B. Renaissance Technologies Corp. sold its entire common stock position of 17,335 shares between 9/30/10 and 12/31/10. Put/Call ratio has increased 183.64% over the last 10 trading days (from 0.55 to 1.56, which is currently placed at 100% of its annual range). The stock has gained 9.96% over the last year.

5. Costco Wholesale Corporation (COST): Discount, Variety Stores Industry. Market cap of $34.85B. Renaissance Technologies Corp. sold its entire common stock position of 599,213 shares between 9/30/10 and 12/31/10. Put/Call ratio has increased 135.58% over the last 10 trading days (from 1.04 to 2.45, which is currently placed at 94% of its annual range). COST has a relatively low correlation to the market (beta = 0.74), which may be appealing to risk-averse investors.

6. Bank of America Corporation (BAC):
Banks Industry. Market cap of $123.78B. Renaissance Technologies Corp. sold its entire common stock position of 6,913,666 shares between 9/30/10 and 12/31/10. Put/Call ratio has increased 24.66% over the last 10 trading days (from 0.73 to 0.91, which is currently placed at 81% of its annual range). The stock is currently stuck in a downtrend, trading 5.82% below its SMA20, 10.27% below its SMA50, and 7.3% below its SMA200. The stock has lost 29.79% over the last year.

7. Anadarko Petroleum Corporation (APC): Independent Oil and Gas Industry. Market cap of $39.94B. Moore Capital Management sold its entire common stock position of 35,000 shares between 9/30/10 and 12/31/10. Put/Call ratio has increased 22.86% over the last 10 trading days (from 1.05 to 1.29, which is currently placed at 98% of its annual range). The stock has gained 13.92% over the last year.

8. Baker Hughes Incorporated (BHI): Oil and Gas Equipment and Services Industry. Market cap of $32.16B. D.E. Shaw & Co. sold its entire common stock position of 86,180 shares between 9/30/10 and 12/31/10. Put/Call ratio has increased 19.18% over the last 10 trading days (from 0.73 to 0.87, which is currently placed at 87% of its annual range). The stock has gained 47.09% over the last year.

*13-f filings sourced from EDGAR, options data sourced from Schaeffer’s, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 8 Companies Dumped by Hedge Funds, Seeing Extremely Bearish Put/Call Ratios