Online:
Visits:
Stories:
Profile image
By silveristhenew (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

The 30 Stocks the “Smart Money” Hates the Most

Thursday, May 21, 2015 13:58
% of readers think this story is Fact. Add your two cents.

(Before It's News)

wolfstreet.com / by Wolf Richter • 

What are the stocks that the ultimate “smart money” – hedge funds – shorts the most, even in this environment where the Fed and financial engineering, powered by nearly free money, have whipped stocks relentlessly higher? That’s the question. And Goldman Sachs shed some light on it in its new “Hedge Fund Trend Monitor.”

Hedge funds don’t really hedge anymore. They’ve become stock-market jockeys, holding huge chunks of some of the most hyped companies, such as Apple and Facebook, and pharmaceutical companies on the theory that healthcare is eating up an increasing part of individual, corporate, and government spending. Add to it M&A and stock buybacks. It should be a winning trio.

The idea: if enough hedge funds buy enough of the same stocks, their massive buying as a group will help turn this into a self-fulfilling strategy. When the retail buyer finally jumps in, it will help them get out.

But hedge funds are also shorting stocks. In this environment! They know what they’re doing; they’re the “smart money.” How smart?

Hedge fund returns have lagged the S&P 500 index for six years straight through 2014, and only outperformed the index in 3 of the last 12 years, according to Goldman’s prior data, cited by Zero Hedge. That’s how smart they are. But they do charge a lot in fees. That’s how really smart they are!

READ MORE

The post The 30 Stocks the “Smart Money” Hates the Most appeared first on Silver For The People.



Source: http://silveristhenew.com/2015/05/21/the-30-stocks-the-smart-money-hates-the-most/

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.