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We follow hedge fund managers because they're the smartest investors around. They leave less to chance than most investors. They go great lengths to get an “edge” over ordinary investors. Hedge fund managers also have the resources to do extensive research on public companies and they have access to experts who can guide them. We believe we are more likely to beat the market by imitating insiders and hedge funds than trading against them. Based on the transactions of nearly 700 hedge funds compiled by Goldman Sachs, we present the list of top 11 consumer discretionary stocks that hedge funds are buying like crazy:

1. Ford Motor (NYSE:F): Sixteen hedge funds had F among their top 10 holdings. Hedge funds collectively own 3% of the outstanding shares. The stock lost 11.1% so far this year. Philippe Jabre’s Jabre Capital and Jonathan Jacobson’s Highfields Capital are among the hedge funds with huge F positions.

2. Liberty Media Starz (LSTZA): Sixteen hedge funds had LSTZA among their top 10 holdings. Hedge funds collectively own 30% of the outstanding shares. The stock gained 14.7% so far this year. Christian Leone’s Luxor Capital and Stephen Mandel’s Lone Pine had the largest holdings in LSTZA at the end of March.

3. Las Vegas Sands (NYSE:LVS): Sixteen hedge funds had LVS among their top 10 holdings. Hedge funds collectively own 3% of the outstanding shares. The stock lost 9.6% so far this year. Peter Eichler’s Aletheia and John Burbank’s Passport had large positions in LVS at the end of March.

4. Priceline.Com (NASDAQ:PCLN): Sixteen hedge funds had PCLN among their top 10 holdings. Hedge funds collectively own 13% of PCLN’s outstanding shares. The stock gained 28.9% so far this year. Andreas Halvorsen’s Viking Global and Paul Reeder’s Par Capital were among the fund managers who are bullish about PCLN.

5. Charter Communications (NASDAQ:CHTR): Fifteen hedge funds had CHTR among their top 10 holdings. Hedge funds collectively own 13% of CHTR’s outstanding shares. The stock returned 45.1% so far this year. Howard Marks’ Oaktree, Doug Silverman’s Senator Investment Group and Michael Johnston’s Steelhead Partners had large positions in CHTR at the end of March.

6. Liberty Media Capital Group (LCAPA): Fifteen hedge funds had LCAPA among their top 10 holdings. Hedge funds collectively own 23% of LCAPA’s outstanding shares. The stock gained 45.7% so far this year. Michael Lowenstein’s Kensico Capital, Chase Coleman’s Tiger Global and Murray Stahl’s Horizon Asset Management had large holdings in LCAPA at the end of March.

7. Netflix (NASDAQ:NFLX): Fourteen hedge funds had NFLX among their top 10 holdings. Hedge funds collectively own 14% of NFLX’s outstanding shares. The stock gained 54.1% so far this year. John Griffin’s Blue Ridge and Philippe Laffont’s Coatue had large holdings in NFLX at the end of March.

8. Amazon.Com (NASDAQ:AMZN): Thirteen hedge funds had AMZN among their top 10 holdings. Hedge funds collectively own 3% of AMZN’s outstanding shares. The stock gained 9.3% so far this year. Ken Fisher and John Griffin had large holdings in AMZN at the end of March.

9. Lear Corp (NYSE:LEA): Thirteen hedge funds had LEA among their top 10 holdings. Hedge funds collectively own 22% of LEA’s outstanding shares. The stock gained 3.2% so far this year. John Paulson’s Paulson & Co and Marc Lasry’s Avenue Capital are among the hedge funds with large LEA positions.

10. Viacom (VIA.B): Thirteen hedge funds had Viacom among their top 10 holdings. Hedge funds collectively own 13% of Viacom’s outstanding shares. The stock gained 27.7% so far this year. Eric Mindich’s Eton Park and Chris Hohn’s Children’s Investment Fund had large Viacom holdings at the end of March.

11. Directv (NASDAQ:DTV): Twelve hedge funds had DTV among their top 10 holdings. Hedge funds collectively own 6% of DTV’s outstanding shares. The stock gained 25.9% so far this year. Mason Hawkins Southeastern Asset Management and Jonathan Jacobson’s Highfields Capital had the largest position in DTV among the 300+ funds we track.

These 11 stocks had an average return of 21.3% so far in 2011. Investors who want to bet on economic recovery and increasing consumer spending should consider investing in these 11 hedge fund favorites. Hedge funds profited handsomely.

Source: 11 Consumer Discretionary Stocks Hedge Funds Are Buying Like Crazy