Well, ZeroHedge put out a great article this morning highlighting an report out by Goldman Sachs on hedge fund holdings (as of December 31, 1009). There is a lot of data hidden within this report, you must know which morsels to focus on though. I personally focus on the Top 50 page, which highlights the stocks hedge funds are all over. It is no surprise Apple is at the top of the list with 83 funds all dipping into the honey pot. *And you wondered why Apple is so hard to trade intra-day, you are up against a very formidable opponent(s).
Reading further into the report you will notice a morsel highlighting the top stocks with largest hedge fund short interest. Interestingly enough you have Amedisys (AMED) at the top of the list, 55% short as a % of the market cap.
What strikes me on the contrarian side of things is the large swath of shorts across many different sectors. Specifically retail with Gymboree, Buckle and Saks, these names are fairly heavy hitters in the industry. Thus for these hedge funds to remain short these names something really must be brewing. For all your Dow chasers you are in luck, there are not many industrial names with large short interest, though i feel like this is standard because industry is usually the last to draw down, retail and direct consumer based providers usually falter first.
Last not for tech chases, the majority of net longs have rotated out of the sector and are now more net long industrials.
Morsel of the story.. Stocks with high hedge fund interest are always a tricky trade. My personal favorite BS stock of the hour is SHLD, that thing will ruin your day faster than spoiled milk in the morning.
Tuesday, February 23, 2010
By Hedge Ly | 2/23/2010 12:32:00 PM |