This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Stocks Favored by Hedge Funds

NEW YORK ( Insider Monkey ) -- Hedge fund managers rarely come up with "original" investment ideas. They have a limited number of employees and there are so many stocks to cover. Most of them invest in only a tiny fraction of all stocks in the stock market. It's not feasible for them to research each and every stock trading in the markets.

One solution is to start with a much smaller universe. They can reduce the number of stocks which need an in-depth analysis by four methods:

1. Use predetermined quantitative filters.

2. Use investment ideas pitched by independent research firms.

3. Use stocks invested by other hedge funds.

4. Follow the news, financial publications, etc. and try to create investment themes.

Insider Monkey, your source for free insider trading data, generally doesn't want to pay anybody for investment ideas, so we stay away from independent research firms. However, we follow insider transactions and pick potentially profitable stocks bought by insiders. That's a good starting point for an in-depth analysis. We also follow the news and use our judgment whether a particular stock, sector or theme is ripe for higher returns.

Our third approach is to follow other hedge fund managers and examine their stock picks. Most hedge fund managers also do this to a certain degree. They get tips from their hedge fund buddies and pay back with their own tips. We don't think there is anything wrong with this. The only problem is sometimes some trades might get really crowded.

Insider Monkey prepared the list of top 10 stocks enormously owned by hedge funds. We require at least 70 hedge funds owning these stocks and rank them by the percent of the company owned by hedge funds ( source data) . You might interpret this list as a "hedge fund favorite stock list" or a "hedge fund risky stock list." Clearly, hedge funds think highly of these stocks and they accumulated huge amounts of shares. However, it is also possible to see that these stocks would plunge much more than other stocks if negative news hit the company and hedge funds try to exit their positions all at once. Here are these 10 stocks enormously owned by hedge funds.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
VIA.B $0.00 0.00%
APC $47.03 -6.10%
AON $105.97 0.19%
CF $32.09 1.30%
POT $16.66 -1.30%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs