10 Most Crowded Stocks Hedge Funds Are Holding

|
 |  Includes: CHMT, CIT, EQIX, ESV, LEA, LMCA, SINA, SSCC, VRX
by: Insider Monkey

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 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 (NYSE:GS), we compiled this list of top 10 most crowded stocks that hedge funds are holding. We required that these companies should have at least 15 hedge funds having them among their top 10 holdings.

1. Smurfit-Stone Container (NYSE:SSCC): This is one of the hedge funds’ most favorite merger arbitrage play. Twenty-eight hedge funds had PFE among their top 10 holdings. Hedge funds collectively own 65% of the outstanding shares at the end of March. John Paulson’s Paulson & Co. and Barry Rosenstein’s JANA Partners had the largest stakes in SSCC among the 300+ hedge funds we tracks.

2. Chemtura (NYSE:CHMT): Twenty-two hedge funds had CHMT among their top 10 holdings. Hedge funds collectively own 58% of the outstanding shares. The stock gained 16% so far this year. James Dinan’s York Capital and Joshua Friedman’s Canyon Capital had the largest holdings in CHMT at the end of March.

3. Liberty Media Starz Group (LSTZA): Sixteen hedge funds had LSTZA among their top 10 holdings. Hedge funds collectively own 30% of the outstanding shares. The stock gained 21.8% 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.

4. Equinix Inc (NASDAQ:EQIX): Twelve hedge funds had EQIX among their top 10 holdings. Hedge funds collectively own 30% of the outstanding shares. The stock gained 21.5% so far this year. Stephen Mandel’s Lone Pine, Jeffrey Tannenbaum’s Fir Tree and Eric Bannasch’s Cadian had the largest stake in EQIX among the 300+ funds we are following.

5. CIT Group (NYSE:CIT): Twenty three hedge funds had CIT among their top 10 holdings. Hedge funds collectively own 24% of CIT’s outstanding shares. The stock lost 8% so far this year. Marc Lasry’s Avenue Capital and Bruce Berkowitz’s Fairholme had large positions in CIT 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 41.5% 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. 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 1.4% so far this year. John Paulson’s Paulson & Co and Marc Lasry’s Avenue Capital are among the hedge funds with large LEA positions.

8. Ensco Plc (NYSE:ESV): Twelve hedge funds had ESV among their top 10 holdings. Hedge funds collectively own 19% of ESV’s outstanding shares. The stock gained 6% so far this year. Robert Rodriguez’s First Pacific Advisors had the largest position in ESV among the 300+ funds we track.

9. Valeant Pharma (NYSE:VRX): Sixteen hedge funds had VRX among their top 10 holdings. Hedge funds collectively own 17% of the outstanding shares. The stock gained 89% so far this year. Jeffrey Ubben's ValueAct Capital had nearly $1 Billion in VRX. John Griffin's Blue Ridge, Andreas Halvorsen's Viking Global and Robert Pitts' Steadfast Capital had large positions in VRX too.

10. Sina Corp (NASDAQ:SINA): Thirteen hedge funds had SINA among their top 10 holdings. Hedge funds collectively own 16% of the outstanding shares. The stock gained 62% so far this year. Philippe Laffont’s Coatue, John Thaler’s JAT Capital, and Rob Citrone also had large stakes in this Chinese Internet company as well.

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