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When searching for potentially oversold stocks, it's interesting to look at stocks being dragged down by extreme bearishness.

To that end, we wanted to find those stocks that have been seeing the broadest negative attention – from famous hedge funds, institutional investors, and mutual funds. We report here 18 stocks that have seen at least one large hedge fund completely sell out of its long position in common stock between 9/30/10 and 12/31/10, and have also seen net selling from both institutional investors and mutual funds over the current and previous quarters.



Do you think these names are oversold? Use this list as a starting-off point for your own analysis into potentially oversold opportunities.

List sorted by market cap.

1. BHP Billiton Ltd. (NYSE:BHP): Industrial Metals & Minerals Industry. Market cap of $281.11B. Renaissance Technologies Corp. sold its entire common stock position of 26,802 shares between 9/30/10 and 12/31/10. Net institutional shares sold during current quarter at 4.1M and 4.9M net shares sold during previous quarter. Net mutual fund shares sold during current quarter at 524.0K and 1.6M net shares sold during the previous quarter. The stock has gained 36.73% over the last year.

Recent developments: Announced completion of an off-market buyback of 147M shares (April 2011). Announced completion of purchase of Fayetteville Shale assets from Chesapeake Energy Corp. (NYSE:CHK) for $4.75B by subsidiary BHP Billiton Petroleum (Mar. 2011).

2. International Business Machines Corp. (NYSE:IBM): Diversified Computer Systems Industry. Market cap of $208.27B. Moore Capital Management sold its entire common stock position of 15,000 shares between 9/30/10 and 12/31/10. Net institutional shares sold during current quarter at 5.3M and 12.2M net shares sold during previous quarter. Net mutual fund shares sold during current quarter at 6.0M and 714.3K net shares sold during the previous quarter. The stock has a relatively low correlation to the market (beta = 0.73), which may be appealing to risk-averse investors. The stock has gained 33.34% over the last year.

Recent developments: Announced authorization of $8B for stock repurchase (April 2011). Raised FY11 diluted EPS guidance to at least $12.73 from at least $12.56 (April 2011).

3. Vale S.A. (NYSE:VALE): Steel & Iron Industry. Market cap of $172.73B. Moore Capital Management sold its entire common stock position of 875,000 shares between 9/30/10 and 12/31/10. Net institutional shares sold during the current quarter at 8.3M and 10.8M net shares sold during previous quarter. Net mutual fund shares sold during the current quarter at 7.8M and 12.1M net shares sold during the previous quarter. The stock has gained 8.24% over the last year.

4. Novartis AG (NYSE:NVS):
Drug Manufacturer. Market cap of $134.77B. D.E. Shaw & Co. sold its entire common stock position of 64,971 shares between 9/30/10 and 12/31/10. Net institutional shares sold during the current quarter at 25.3M and 2.8M net shares sold during previous quarter. Net mutual fund shares sold during the current quarter at 13.4M and 16.0M net shares sold during the previous quarter. The stock has gained 19.78% over the last year.

5. America Movil S.A.B. de C.V. (NYSE:AMX): Wireless Communications Industry. Market cap of $90.86B. Renaissance Technologies Corp. sold its entire common stock position of 866,800 shares between 9/30/10 and 12/31/10. Net institutional shares sold during the current quarter at 17.4M and 8.1M net shares sold during previous quarter. Net mutual fund shares sold during current quarter at 3.1M and 1.5M net shares sold during the previous quarter. The stock has gained 10.68% over the last year.

6. United Technologies Corp. (NYSE:UTX)
: Conglomerates Industry. Market cap of $82.0B. Soros Fund Management sold its entire common stock position of 7,000 shares between 9/30/10 and 12/31/10. Net institutional shares sold during the current quarter at 16.3M and 5.3M net shares sold during the previous quarter. Net mutual fund shares sold during the current quarter at 1.9M and 2.6M net shares sold during the previous quarter. The stock has gained 19.77% over the last year.

7. Abbott Laboratories (NYSE:ABT): Drug Manufacturer. Market cap of $80.92B. Moore Capital Management sold their entire common stock position of 125,000 shares between 9/30/10 and 12/31/10. Net institutional shares sold during the current quarter at 22.8M and 14.3M net shares sold during the previous quarter. Net mutual fund shares sold during the current quarter at 26.0M and 12.4M net shares sold during the previous quarter. The stock has a relatively low correlation to the market (beta = 0.29), which may be appealing to risk-averse investors. The stock has gained 6.82% over the last year.

8. ABB Ltd. (NYSE:ABB): Industrial Electrical Equipment Industry. Market cap of $62.94B. D.E. Shaw & Co. sold its entire common stock position of 27,954 shares between 9/30/10 and 12/31/10. Net institutional shares sold during the current quarter at 7.9M and 13.0M net shares sold during previous quarter. Net mutual fund shares sold during current quarter at 5.3M and 6.0M net shares sold during the previous quarter. The stock is exhibiting strong upside momentum--currently trading 10.95% above its SMA20, 13.94% above its SMA50, and 25.35% above its SMA200. The stock has had a couple of great days, gaining 9.17% over the last week.

9. Diageo plc (NYSE:DEO): Beverages Industry. Market cap of $50.79B. D.E. Shaw & Co. sold its entire common stock position of 24,897 shares between 9/30/10 and 12/31/10. Net institutional shares sold during the current quarter at 698.1K and 59.6K net shares sold during previous quarter. Net mutual fund shares sold during the current quarter at 828.3K and 579.2K net shares sold during the previous quarter. The stock has gained 21.78% over the last year.

10. Medtronic, Inc. (NYSE:MDT): Medical Appliances & Equipment Industry. Market cap of $44.76B. BlueCrest Capital Management sold its entire common stock position of 48,965 shares between 9/30/10 and 12/31/10. Net institutional shares sold during the current quarter at 17.1M and 8.5M net shares sold during the previous quarter. Net mutual fund shares sold during the current quarter at 27.5M and 4.4M net shares sold during the previous quarter. The stock has lost 2.13% over the last year.

11. Walgreen Co. (NYSE:WAG)
: Drug Stores Industry. Market cap of $39.52B. Soros Fund Management sold its entire common stock position of 14,100 shares between 9/30/10 and 12/31/10. Net institutional shares sold during the current quarter at 12.1M and 39.4M net shares sold during the previous quarter. Net mutual fund shares sold during the current quarter at 14.4M and 6.8M net shares sold during the previous quarter. The stock has gained 22.68% over the last year.

12. Nike Inc. (NYSE:NKE): Apparel Footwear & Accessories Industry. Market cap of $39.15B. Renaissance Technologies Corp. sold its entire common stock position of 889,000 shares between 9/30/10 and 12/31/10. Net institutional shares sold during the current quarter at 1.5M and 5.0M net shares sold during the previous quarter. Net mutual fund shares sold during the current quarter at 3.0M and 11.1K net shares sold during the previous quarter. The stock has gained 8.01% over the last year.

13. DIRECTV (NASDAQ:DTV): CATV Systems Industry. Market cap of $38.11B. Moore Capital Management sold its entire common stock position of 22,000 shares between 9/30/10 and 12/31/10. Net institutional shares sold during the current quarter at 38.8M and 39.4M net shares sold during the previous quarter. Net mutual fund shares sold during the current quarter at 3.9M and 143.7K net shares sold during the previous quarter. The stock has gained 31.77% over the last year.

14. Marathon Oil Corporation (NYSE:MRO):
Oil & Gas Refining & Marketing Industry. Market cap of $37.40B. Moore Capital Management sold its entire common stock position of 625,000 shares between 9/30/10 and 12/31/10. Net institutional shares sold during the current quarter at 359.6K and 3.0M net shares sold during previous quarter. Net mutual fund shares sold during the current quarter at 8.4M and 10.8M net shares sold during the previous quarter. The stock has gained 67.07% over the last year.

15. Syngenta AG (NYSE:SYT): Agricultural Chemicals Industry. Market cap of $32.67B. Renaissance Technologies Corp. sold its entire common stock position of 89,000 shares between 9/30/10 and 12/31/10. Net institutional shares sold during current quarter at 856.4K and 2.1M net shares sold during previous quarter. Net mutual fund shares sold during the current quarter at 922.6K and 333.6K net shares sold during the previous quarter. The stock has gained 37.77% over the last year.

16. Norfolk Southern Corp. (NYSE:NSC): Railroads Industry. Market cap of $27.68B. BlueCrest Capital Management sold its entire common stock position of 6,395 shares between 9/30/10 and 12/31/10. Net institutional shares sold during the current quarter at 3.9M and 4.6M net shares sold during the previous quarter. Net mutual fund shares sold during the current quarter at 3.0M and 1.8M net shares sold during the previous quarter. The stock is exhibiting strong upside momentum--currently trading 9.1% above its SMA20, 11.29% above its SMA50, and 21.24% above its SMA200. The stock has had a couple of great days, gaining 10.78% over the last week.

17. Public Service Enterprise Group Inc. (NYSE:PEG): Diversified Utilities Industry. Market cap of $16.24B. Soros Fund Management sold its entire common stock position of 10,500 shares between 9/30/10 and 12/31/10. Net institutional shares sold during the current quarter at 2.5M and 3.1M net shares sold during previous quarter. Net mutual fund shares sold during the current quarter at 583.8K and 145.0K net shares sold during the previous quarter. The stock has gained 5.28% over the last year.

18. PPL Corporation (NYSE:PPL): Electric Utilities Industry. Market cap of $13.26B. Soros Fund Management sold its entire common stock position of 41,500 shares between 9/30/10 and 12/31/10. Net institutional shares sold during the current quarter at 20.6M and 565.0K net shares sold during previous quarter. Net mutual fund shares sold during the current quarter at 1.9M and 6.0M net shares sold during the previous quarter. The stock has had a good month, gaining 10.6%.

*Hedge fund data sourced from 13-f filings from EDGAR, institutional and mutual fund data sourced from Fidelity, 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: 18 Stocks Hedge Funds and Mutual Funds Are Dumping