20 Stocks That Are Under The Control Of Hedge Funds

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Goldman Sachs recently released its “Hedge Fund Trend Monitor,” a massive report detailing the fourth quarter investment moves made by the world’s biggest hedge funds.The report included a list of “most concentrated” stocks.  These are the companies for which huge shares of their outstanding stocks are owned by hedge funds.

Goldman found that these stocks tend to do very well in upward trending markets, but they also do poorly in downward trending ones. From the report:

The “most concentrated” stocks lagged for most of 2007 and 2008, but significantly outperformed in 2009 (81.4% vs. 26.5%) and 2010 (15.9% vs. 15.1%). Our “most concentrated” basket underperformed the S&P 500 by 391 bp in 2011 (-1.8% vs. 2.1%) but outperformed by 814 bp in 2012 (24.1% vs. 16.0%).

We pulled the 20 stocks with the largest hedge fund ownership stakes according to Goldman’s report. All stocks listed have between 19-36% of their outstanding shares owned by hedge funds. We also included the names of the five hedge funds with the largest stakes.

20. Legg Mason

Ticker: LM

Sector:
Asset management and custody banks

Percentage owned by hedge funds: 19%

4Q Return: 5%

YTD Return: 11%

Major Owners:
Trian Fund Management LP: 12.9 million shares
Greenlight Capital Inc: 3.4 million shares
Citadel Advisors LLC: 1.3 million shares
Levin Advisors Strategies LP: .9 million shares
QVT Financial LP: .8 million shares

19. Apollo Group

Ticker: APOL

Sector:
Education services

Percentage owned by hedge funds: 19%

4Q Return: -28%

YTD Return: -8%

Major Owners:
Pzena Investment Management LLC: 7.1 million shares
Citadel Advisors LLC: 2.5 million shares
Bridgewater Associates LP: 1.8 million shares
AQR Capital Management LLC: 1.1 million shares
Two Sigma Investments LP: .8 million shares

18. Family Dollar Stores

Ticker: FDO

Sector:
General merchandise stores

Percentage owned by hedge funds: 19%

4Q Return: -4%

YTD Return: -13%

Major Owners:
Trian Fund Management LP: 9 million shares
Maverick Capital Ltd.: 4.2 million shares
Highfields Capital Management: 1.5 million shares
Pennant Capital Management LLC: 1.4 million shares
Renaissance Technologies Corp: 1 million shares

17. CBRE Group Inc

Ticker: CBG

Sector:
Real estate services

Percentage owned by hedge funds: 20%

4Q Return: 8%

YTD Return: 23%

Major Owners:
Valueact Holdings LP: 32 million shares
Select Equity Group Inc: 18.5 million shares
Blum Capital Partners LP: 15.1 million shares
Partner Fund Management LP: 5.2 million shares
Criterion Capital Management: 2.9 million shares

16. Genworth Financial

Ticker: GNW

Sector:
Multi-line insurance

Percentage owned by hedge funds: 20%

4Q Return: 44%

YTD Return: 21%

Major Owners:
Highfields Capital Management: 27.2 million shares
Baupost Group LLC: 15 million shares
RBS Partners LP: 12 million shares
Arrowstreet Cap Limited Partners: 5.1 million shares
Paulson & Co: 3.9 million shares

15. Life Technologies

Ticker: LIFE

Sector:
Life sciences tools and services

Percentage owned by hedge funds: 20%

4Q Return: 0%

YTD Return: 29%

Major Owners:
Paulson & Co: 14 million shares
Glenview Capital Management Inc: 11.2 million shares
Sectoral Asset Management: 2 million shares
Orbimed Advisors LLC: 1.9 million shares
Cadian Capital Management LLC: 1.6 million shares

14. WPX Energy

Ticker: WPX

Sector:
Oil and gas exploration and production

Percentage owned by hedge funds: 21%

4Q Return: -10%

YTD Return: 1%

Major Owners:
Fir Tree Inc: 8.2 million shares
Taconic Capital Advisors LP: 7.5 million shares
Levin Capital Strategies LP: 3.8 million shares
Brenner West Capital Advisors: 3.3 million shares
Omega Advisors: 2.1 million shares

13. Ralph Lauren Corp.

Ticker: RL

Sector:
Apparel accessories and luxury goods

Percentage owned by hedge funds: 21%

4Q Return: -1%

YTD Return: 18%

Major Owners:
Lone Pine Capital LLC: 3.9 million shares
Maverick Capital Ltd: 1.8 million shares
Blue Ridge Capital LLC: 1.6 million shares
Brookside Capital Investors Inc: 1.2 million shares
SAC Capital Advisors LP: .7 million shares

12. American International Group

Ticker: AIG

Sector:
Multi-line insurance

Percentage owned by hedge funds: 21%

4Q Return: 8%

YTD Return: 9%

Major Owners:
Third Point LLC: 18.5 million shares
Perry Corp: 14.9 million shares
D.E. Shaw & Company Inc: 11. 8 million shares
Kensico Capital Management: 10.6 million shares
Steadfast Capital Management LLC: 10.4 million shares

11. Netflix Inc.

Ticker: NFLX

Sector:
Internet retail

Percentage owned by hedge funds: 23%

4Q Return: 70%

YTD Return: 112%

Major Owners:
Ichan Associates Corp: 5.5 million shares
Slate Patch Capital LP: 1.3 million shares
Coatue Management LLC: 1.3 million shares
Jana Partners LLC: 1 million shares
Apex Capital LLC: .6 million shares

10. Dollar General

Ticker: DG

Sector:
General merchandise stores

Percentage owned by hedge funds: 23%

4Q Return: -14%

YTD Return: 0%

Major Owners:
Lone Pine Capital LLC: 13.3 million shares
Eton Park Capital Management: 6.5 million shares
Scout Capital Management LLC: 6.3 million shares
Brookside Capital Investors Inc: 5.3 million shares
Maverick Capital Ltd: 4.6 million shares

9. J.C. Penney

Ticker: JCP

Sector:
Department stores

Percentage owned by hedge funds: 26%

4Q Return: -19%

YTD Return: -1%

Major Owners:
Pershing Square Capital Management: 39.1 million shares
Glenview Capital Management Inc: 7.3 million shares
Westchester Capital Management: 1.7 million shares
Ivory Investment Management LP: 1.3 million shares
Kinetics Asset Management LLC: 1 million shares

8. LyondellBasell Industries N.V.

Ticker: LYB

Sector:
Commodity chemicals

Percentage owned by hedge funds: 26%

4Q Return: 18%

YTD Return: 7%

Major Owners:
Viking Global Investors LP: 7.5 million shares
Discovery Capital Management LLC: 5.2 million shares
Adage Capital Partners GP LLC: 2.5 million shares
Third Point LLC: 2.4 million shares
Columbus Circle Investors: 1.7 million shares

7. Tenet Healthcare

Ticker: THC

Sector:
Health care facilities

Percentage owned by hedge funds: 28%

4Q Return: 29%

YTD Return: 25%

Major Owners:
Glenview Capital Management Inc: 13.8 million shares
Oracle Management Inc: 2.8 million shares
Samlyn Capital LLC: 2 million shares
Bridger Management LLC: 2 million shares
Blue Ridge Capital LLC: 1.7 million shares

6. Delphi Automotive

Ticker: DLPH

Sector:
Auto parts and equipment

Percentage owned by hedge funds: 29%

4Q Return: 23%

YTD Return: 4%

Major Owners:
Eliott Management Corp: 25.3 million shares
Paulson & Co: 13.5 million shares
Silver Point Capital LP: 11.1 million shares
Centerbridge Partners 10.4 million shares
Thrid Point LLC: 10 million shares

5. MetroPCS Communications

Ticker: PCS

Sector:
Wireless telecommunications services

Percentage owned by hedge funds: 31%

4Q Return: -15%

YTD Return: 3%

Major Owners:
Paulson & Co: 31.8 million shares
MHR Fund Management LLC: 14.6 million shares
Westchester Capital Management: 11.9 million shares
P Schoenfeld Asset Management LLC: 6 million shares
Quaker Capital Management: 5.8 million shares

4. AutoNation

Ticker: AN

Sector:
Automotive retail

Percentage owned by hedge funds: 33%

4Q Return: -9%

YTD Return: 14%

Major Owners:
RBS Partners L P: 34.6 million shares
Horizon Asset Management LC: 3.5 million shares
Kinetics Asset Management LLC: 2.8 million shares
Apex Capital Management: .4 million shares
D.E. Shaw & Company Inc: .4 million shares

3. TripAdvisor

Ticker: TRIP

Sector:
Internet retail

Percentage owned by hedge funds: 33%

4Q Return: 27%

YTD Return: 4%

Major Owners:
Lone Pine Capital LLC: 6.6 million shares
Pennant Capital Management LC: 4.5 million shares
Coatue Management LLC: 3.3 million shares
Par Capital Management Inc: 3.2 million shares
Jana Partners LLC: 2.3 million shares

2. E*Trade Financial

Ticker: ETFC

Sector:
Investment banking and brokerage

Percentage owned by hedge funds: 33%

4Q Return: 2%

YTD Return: 26%

Major Owners:
Citdel Advisors LLC: 27.4 million shares
Glenview Capital Management Inc: 11.5 million shares
Omega Advisors: 8 million shares
Senator Investment Group LP: 7.5 million shares
Carlson Capital LP: 4.2 million shares

1. VeriSign Inc.

Ticker: VRSN

Sector:
Internet software and services

Percentage owned by hedge funds: 36%

4Q Return: -20%

YTD Return: 19%

Major Owners:
Lone Pine Capital LLC: 14.7 million shares
Hoplite Capital Management: 4.5 million shares
Blue Ridge Capital LLC: 3.5 million shares
Coatue Management LLC: 3.2 million shares
Jana Partners LLC: 3.1 million shares

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