50 stocks that "matter most" to hedge funds


Hedge funds are having a difficult time of it again this year, up 1% vs. a 7.5% gain for the S&P 500, according to Goldman Sachs, which crunched the numbers on 775 funds with $1.9T in AUM.

Nevertheless, Goldman's list of 50 stocks which "matter most" to hedge funds has outperformed the S&P 500 on a quarterly basis 66% of the time since 2001. The stocks this quarter (posted in order of the number of funds in which a name is a top-10 holding):

ACT, AAPL, FB, AGN, AAL, GM, TWC, AIG, MSFT, HTZ, CHTR, MU, WMB, LNG, C, DAL, HCA, APC, CBS, ALLY, GOOGL, APD, NRF, BAC, EBAY, LBTYK, PCLN, VRX, BIDU, DTV, DISH, DG, EQIX, MA, WAG, ARCP, GILD, LINTA, MON, FOXA, VC, AMZN, BRK.A, BRK.B, SUNE, CMCSA, JPM, MIC, CCI, HES, LAMR.

A special call-out to Northstar Realty (NYSE:NRF), Visteon (NYSE:VC), SunEdison (NYSE:SUNE), Macquarie Infrastructure (NYSE:MIC), and Lamar Advertising (NASDAQ:LAMR) for making the list of hedge fund hotels despite their relatively tiny market caps.

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Comments (19)
  • JMajoris
    , contributor
    Comments (1408) | Send Message
     
    Meena at InsiderMonkey.com has a GREAT newsletter regarding this subject.
    21 Aug 2014, 11:46 AM Reply Like
  • leopardtrader
    , contributor
    Comments (3618) | Send Message
     
    NFLX, TSLA, TWTR and so on not making this list means this does not represent the headline and essentially rubbish
    21 Aug 2014, 12:12 PM Reply Like
  • Snoopy1
    , contributor
    Comments (1125) | Send Message
     
    Most hedge funds, despite their reputation, don't buy stocks that with excessive valuation. Very few hedge funds own these stocks based on 13F filings.
    21 Aug 2014, 03:25 PM Reply Like
  • markcc
    , contributor
    Comments (2679) | Send Message
     
    Snoopy1, the title is companies that "matter most" so, if these guys think the stocks are overvalued, they should take a short position instead. I agree with leopard trader that those should be on the list, not for upside but for downside. I have made a lot of money watching stocks go down.
    22 Aug 2014, 06:32 PM Reply Like
  • Hardog
    , contributor
    Comments (16576) | Send Message
     
    Interesting set of stocks though.
    21 Aug 2014, 12:15 PM Reply Like
  • chopchop0
    , contributor
    Comments (5059) | Send Message
     
    yup it sure is.
    21 Aug 2014, 09:45 PM Reply Like
  • Andrew A
    , contributor
    Comments (325) | Send Message
     
    All they needed was one stock for the last two years... Apple. I mean really, are they all stupid??
    21 Aug 2014, 12:30 PM Reply Like
  • Stock Market Mike
    , contributor
    Comments (3504) | Send Message
     
    I don't think buying just AAPL is proper hedging.

     

    Although who am I to argue? I threw 85% of my net worth into MU at about $5.50

     

    -Mike
    21 Aug 2014, 12:36 PM Reply Like
  • tromur
    , contributor
    Comments (481) | Send Message
     
    you are one smart dude. I remember you saying a month ago or so you would sell MU at $34.5. How did you pick the top again and have you bought back?
    21 Aug 2014, 07:30 PM Reply Like
  • Stock Market Mike
    , contributor
    Comments (3504) | Send Message
     
    I don't know - I've been watching the company every day since I bought in. Just had a feeling it had climbed far enough and needed to take a break.

     

    I still hold MU with $34-36 strike 2015 LEAP calls sold against it, but I've been strongly considering buying some put protection. There seems to be two sides battling right now, making bear and bull arguments. It's probably going to be less than a month before it tries to break out in one directon or another.

     

    I've been dabbling a little with weekly puts and calls, closing them once I get 30-100% gains, but I'm stopping that soon. The market started acting weird this week, which means I'll have trouble predicting where the stock is going day by day.

     

    I'm watching the iPhone 6 launch to see how much DRAM it has in it. 2GB means quite a bit of extra demand, so bit demand is likely to outpace supply. 1GB would mean supply has a better chance of getting too high, which means MU's DRAM margins could come under some pressure. It doesn't have to move the needle much to affect them - a 4% earnings beat or earnings miss could determine which way the stock drifts after the next earnings release, which could be very good or very bad for those of us with $30 strike LEAPs. For that reason, I'm looking to hedge (more), probably with puts, on any rise up to $34+ again.

     

    Technically I've already made money by selling the calls for more than I originally paid for the $30 strikes, but it'd be a shame to leave money on the table if it's possible to figure out its next direction ahead of time.

     

    -Mike
    4 Sep 2014, 06:37 PM Reply Like
  • gelstretch
    , contributor
    Comments (3505) | Send Message
     
    If you can't do half as well as the S&P index...... you should look for a different avocation.
    21 Aug 2014, 12:57 PM Reply Like
  • synchrogeddon
    , contributor
    Comments (375) | Send Message
     
    Not sure if I should be worried or happy to see GILD here.
    21 Aug 2014, 01:35 PM Reply Like
  • foryourtable
    , contributor
    Comments (15) | Send Message
     
    Can anyone tell me exactly what "matter most" means within the context of the article headline?
    21 Aug 2014, 02:21 PM Reply Like
  • Snoopy1
    , contributor
    Comments (1125) | Send Message
     
    Exposure in terms of % weighting of equity holdings.
    21 Aug 2014, 03:26 PM Reply Like
  • wetware
    , contributor
    Comments (32) | Send Message
     
    I'd expect some of the stocks that "matter most" to hedge funds to be short candidates.
    21 Aug 2014, 02:45 PM Reply Like
  • crazty4tennis
    , contributor
    Comments (1191) | Send Message
     
    Do get it right hedge fund managers. I don't have any investments in hedge funds.
    21 Aug 2014, 05:06 PM Reply Like
  • Ghaleb Yassine
    , contributor
    Comments (15) | Send Message
     
    C is the stock to own
    21 Aug 2014, 10:10 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (6717) | Send Message
     
    You missed (NYSE:VIPS).
    21 Aug 2014, 10:57 PM Reply Like
  • bjsunfortune
    , contributor
    Comments (5) | Send Message
     
    高岭俱乐部(the entrance to the china stocks)
    4 Sep 2014, 05:58 AM Reply Like
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