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Hedge Funds Hate These 5 Stocks -- but Should You?

Stocks in this article: AAPLMSFTWFCABCGE

General Electric

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We round out the hedge fund hate list with another huge blue-chip: General Electric (GE). Hedge funds sold off 6.99 million shares of the industrial conglomerate last quarter, reducing GE's position in funds' portfolios by $238 million. That's an about-face from where funds stood on this stock just a few months ago; less than a year ago, GE was funds' favorite industrial stock.

Fund managers seem to be content with their 19% gains, at least on those 6.99 million shares.

GE is involved in a bevy of heavy manufacturing segments, from making jet engines to wind turbines and medical equipment. While those units seem unsuited to work together at fist, the firm is able make the puzzle pieces fit together and share technologies and customers across business lines. The wind turbine business, for instance, can benefit from the advances that the firm is making in the jet engine business -- and the firm can make money by financing all of those customers through GE Capital.

With a solid 3.4% dividend yield and the financial stability you'd expect from a stalwart industrial blue chip, GE still looks like a good option for stock investors, even if hedge funds disagree. With the S&P clawing its way higher in 2013, this stock should go along for the ride.

To see these stocks in action, check out the at Stocks Fund Managers Hate Q4 portfolio on Stockpickr.



-- Written by Jonas Elmerraji in Baltimore.

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Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

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