Seeking Alpha

Most popular hedge fund shorts according to Goldman monitor

Comments (17)
  • I believe NFLX being on high in both the long and short lists is the result of a peculiar income strategy, which results in gradual price infaltion: http://seekingalpha.co...
    25 Nov 2013, 04:21 PM Reply Like
  • Many of these stocks have very limited upside. Some are growing just a couple percent per year, and have already given back the earlier gains this year. (IBM, for example) Most are not very risky shorts, and would probably make good hedges against a total market collapse.
    25 Nov 2013, 04:46 PM Reply Like
  • Disagreed. Many of these stocks are quality names that have done well the last few years. They may dip temporarily, but I think the long-term trajectory is up, especially some of the biotech/pharma names like JNJ and BMY. Even Cramer was saying BMY was a dump in the low 40s, and here we are, over 20% later.

     

    If any of these hedgies got into these shorts several months ago, they must be crying uncle by now between paying the dividend and watching certain shares keep printing new highs (JNJ, WMT, DIS etc). I remember when I snagged some DIS in Nov under $50.
    25 Nov 2013, 09:18 PM Reply Like
  • Oh boy, now I have to panic because my dividend portfolio has several holdings of these companies! My retirement plans are about to collapse immediately and irreversibly! My family and I are going to apply for food stamps...

     

    Seriously, is anyone reading this crap anymore? Some of these companies pay out several billion dollars each year to their shareholders. Why would anyone consider selling or shorting their positions? Makes no sense like 98% of all those market news out there...
    25 Nov 2013, 04:53 PM Reply Like
  • The answer is that they are not real short bets. See the article referenced in the first comment for an explanation.
    25 Nov 2013, 04:56 PM Reply Like
  • How many hedge funds underperformed the s and p last year??
    Through Q3 of this year, hedge funds on average have returned a measly 6% year-to-date.

     

    This is according to Goldman Sachs latest Hedge Fund Trend Monitor report, which examines the performance of 783 hedge funds with $1.7 trillion of gross equity positions.

     

    Read more: http://read.bi/1dwIJYO
    25 Nov 2013, 06:05 PM Reply Like
  • scott,
    u have it right , & your stats are the 'norm" , they consistently under perform , Following the hedge fund boys and girls can be hazardous to your financial health.. They take outrageous fees and have some of the worst records on the street..
    25 Nov 2013, 06:33 PM Reply Like
  • This article is somewhat misleading seeing that it ranks companies by the $ value of short interest, meaning larger companies are more likely to end up high on the list. Shares sold short as % of shares outstanding is a much more meaningful metric.
    25 Nov 2013, 06:06 PM Reply Like
  • With a drug approval pending, what is the thinking on shorting Gilead? Most analysts think the drug will be approved on Dec 8. Is this a gamble that it won't be approved or just because of Gilead's big run up this year?
    25 Nov 2013, 07:57 PM Reply Like
  • some of these look like reasonable shorts technically, but others make no sense. XOM has been undervalued for quite some time now, I doubt that it has much short potential in it.
    25 Nov 2013, 08:18 PM Reply Like
  • This information may help to explain the litanity of jejune positive commentary emanating from anonymous or naive pundits in the last few weeks on T.
    25 Nov 2013, 08:42 PM Reply Like
  • Hello. I'm a novice investor and am looking for a way to make sense of all the contradictory information I read about the market lately. It seems that no one is certain. My gut says we're near some top. So, I've added trailing stops to all my positions but would love to know: are there other/better strategies to protect against a reversal?
    26 Nov 2013, 09:33 AM Reply Like
  • Not really. If you get stopped out, don't hop back in right away. You can afford to be patient and wait for a good entry point. If it never comes - oops. But eventually there'll be another big correction or big bear market, and once you see the bottom, then it's pretty safe to get in.

     

    If you invested in a company in early 2006 and then got stopped out by the brief dip... oops, 2007 was a great year. 2008 however, was *a bit* worse. Anyone buying in early 2009 is well ahead of buy&hold investors that don't use stops. Considering how high the market is right now, it's pretty safe to assume that one day we'll see 1400-1500 on the S&P 500 again. (at least)
    26 Nov 2013, 01:39 PM Reply Like
  • Frisky

     

    A risk management strategy I employed in 2000 and again in '08 ....
    I also use technical charting on individual stocks as another measure of safety..
    This is meant for the Long term investor . If you fall into that category , than give this a look,,
    http://seekingalpha.co...

     

    if you are a short term trader I suggest doing research on short term swing trading , etc..

     

    Good Luck
    26 Nov 2013, 02:44 PM Reply Like
  • Historically the stock market advances pretty steadily with an annual average anywhere between 7 and 10 per cent. Since NOBODY can over the long run predict and time the market, it is a good idea to always invest set amounts of dollars e.g. on a monthly or quarterly basis. When prices are higher you buy less shares and when prices are lower you buy more shares, a.k.a. dollar-cost-averaging.

     

    If your investment horizon is long enough this is the only strategy which will give you both financial success and a deep and sound sleep at night. The contradictory market information will always be out there because there are 10 different opinions when you ask 10 different people. Just ignore it, do your own research and stick to the strategy you find working for you.
    27 Nov 2013, 07:34 PM Reply Like
  • Hey Ringo,
    Yes there are many stratagies to protect against a reversal. First off trailing stops are sitting ducks for pros to take out. Ods are you and many others picked stops within 2% of each other and these are levels pros!hedge funds etc gun for.
    Protection options:

     

    Buy SQQQ -short the QQQ
    Sell covered calls in large positions.
    Buy puts in large position stocks.
    Go to cash in unprofitable/ uncomfortable positions.
    Take profits where available and go to cash.

     

    So there's a few. Good luck and listen to your gut. You'll find it beats most market predictors and is always working for yo.

     

    Ken
    4 Dec 2013, 12:53 PM Reply Like
  • Thanks for your comments and insights.
    2 Dec 2013, 09:33 AM Reply Like
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