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If you like to follow the buying trends of institutional investors such as hedge fund managers and mutual fund managers (the “smart money”), you may be very interested in this list.

We ran a screen on large-cap stocks that have been underperforming the market lately, with quarterly performance worse than -25%. We screened these stocks for those that have also seen significant net institutional purchases over the current quarter.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. (To access a complete analysis of this list's recent performance, click here.)



Do you think institutional investors are right, or will they soon turn with the market and start selling? Use this list as a starting-off point for your own analysis.

List sorted by net institutional purchases as a percent of share float.

1. Morgan Stanley (NYSE:MS): Provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide. Market cap of $28.01B. The stock has lost 36.91% over the past quarter. Net institutional shares purchased over the current quarter at 389.4M, which is 29.06% of the company's 1.34B share float. The stock has lost 42.49% over the last year.

2. ProLogis (NYSE:PLD): An independent equity real estate investment trust. Market cap of $10.65B. The stock has lost 37.05% over the past quarter. Net institutional shares purchased over the current quarter at 48.3M, which is 10.56% of the company's 457.37M share float. The stock is currently stuck in a downtrend, trading 6.95% below its SMA20, 11.98% below its SMA50, and 25.73% below its SMA200. It's been a rough couple of days for the stock, losing 7.35% over the last week.

3. Lloyds Banking Group plc (NYSE:LYG): Provides various banking and financial services to personal and corporate customers primarily in the United Kingdom. Market cap of $34.72B. The stock has lost 33.77% over the past quarter. Net institutional shares purchased over the current quarter at 719.9M, which is 5.69% of the company's 12.66B share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.1). It's been a rough couple of days for the stock, losing 5.61% over the last week.

4. Barclays PLC (NYSE:BCS): Provides various financial products and services in Europe, the United States, Africa, and Asia. Market cap of $30.06B. The stock has lost 38.76% over the past quarter. Net institutional shares purchased over the current quarter at 100.9M, which is 4.28% of the company's 2.36B share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.53). The stock has lost 48.32% over the last year.

5. Ivanhoe Mines Ltd. (IVN): Operates as an exploration and development company. Market cap of $10.64B. The stock has lost 42.93% over the past quarter. Net institutional shares purchased over the current quarter at 8.6M, which is 3.26% of the company's 263.77M share float. The stock is a short squeeze candidate, with a short float at 6.46% (equivalent to 6.9 days of average volume). The stock has performed poorly over the last month, losing 26.4%.

Institutional data sourced from Fidelity; all other data sourced from Finviz.

Source: 5 Underperforming Large Caps The Smart Money Is Sweet On