BALTIMORE (Stockpickr) -- When the "smart money" piles behind a stock, you know that things are going to get interesting. And when the opposite happens -- when they hate a stock -- it's bound to get even more interesting.
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After all, it's the sell list -- the names that institutional investors hate the most -- that represents some of the biggest conviction moves. Scouring fund managers' hate list is valuable for two important reasons: it includes names you should sell too, and it includes names that they're wrong about selling.
You see, hedge funds have a problem on their hands -- they're underperforming the rest of the market in 2014. Year-to-date, the average hedge fund is up just 3.34% according to performance data from BarclayHedge. That's well shy of the S&P 500's 8.7% return so far this year. And that underperformance means that hedge funds are panicking when positions aren't working out quickly.
Pro investors aren't immune from letting their emotions get the better of their trading. And when investors get emotionally involved with the names in their portfolios, they often do the wrong thing.
As a result, in many cases, portfolio managers are leaving money on the table. So today, we're taking a closer look at the stocks they hate the most to figure out where the opportunities lie this fall.
Luckily for us, we can get a glimpse at exactly which stocks top hedge funds' hate lists by looking at 13F statements. Institutional investors with more than $100 million in assets are required to file a 13F, a form that breaks down their stock positions for public consumption. From hedge funds to mutual funds to insurance companies, any professional investors who manage more than that $100 million watermark are required to file a 13F.
So, without further ado, here's a look at five stocks fund managers hate…
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