These are the top 10 stocks that hedge funds are betting the most against

Associated PressSpecialist Dilip Patel, left, and trader Ashley Lara work on the floor of the New York Stock Exchange, Friday, Nov. 15, 2019. Stocks are opening broadly higher on Wall Street as hopes continued to grow that the U.S. and China were moving closer to a deal on trade. (AP Photo/Richard Drew)

  • In its November Hedge Fund Trend Monitor report, Goldman Sachs released a list of the top stocks shorted by hedge funds.
  • Goldman uses the total dollar value of short interest outstanding to estimate hedge fund short portfolio holdings, according to the report.
  • “Short positions continue to contribute alpha, lifting the average equity hedge fund to a 10% YTD return,” Goldman analysts wrote in the report.
  • Here are the top 10 stocks that firms are betting against.
  • Read more on Business Insider.

In the first weeks of November, hedge funds revealed the stocks they’re betting on, and data also showed the ones they’re betting against.

Goldman Sachs analysed 833 hedge funds with $US2.1 trillion in gross equity positions – including $US700 billion short positions – for its Hedge Fund Trend Monitor report released November 18.

From the analysis, Goldman compiled its “Very Important Short Position List” as a short hedge against the most-loved stocks firms own.

The list contains 50 S&P 500 companies with the highest dollar value of short interest outstanding, excluding companies on the long list and stocks with more than 10% of float-adjusted shares held short. The total dollar value of short interest outstanding is used as an estimate of hedge fund short portfolio holdings, according to the report.

“Short positions continue to contribute alpha, lifting the average equity hedge fund to a 10% YTD return,” Goldman analysts wrote in the report. That still lagged the S&P 500 index return of 27% for the same period.

After a few “sluggish” months, hedge fund performance is sharply rebounding in the fourth quarter, according to Goldman. The “Very Important Short” basket has lagged the S&P 500 by 6 percentage points this year, and stocks with the highest short interest as a share of market cap have returned a median of -5% year-t0-date, according to the report.

Here are the top 10 stocks that represent the largest short positions, ranked in order of increasing value of short interest.


10. Chevron

ReutersFILE PHOTO: Chevron (CVX)’s logo is seen in Los Angeles

Ticker:
CVX

Short interest as % of float cap: 1%

Year-to-date return: 15%

Number of hedge funds with stock as a top 10 holding: 2

Value of short interest: $US2.4 billion

Source: Goldman Sachs


9. UnitedHealth Group

Associated PressFILE – This Tuesday, Oct. 16, 2012, file photo, shows a portion of the UnitedHealth Group Inc.’s campus in Minnetonka, Minn. UnitedHealth Group reports financial results Tuesday, Oct. 14, 2019. (AP Photo/Jim Mone, File)

Ticker:
UNH

Short interest as % of float cap: 1%

Year-to-date return: 10%

Number of hedge funds with stock as a top 10 holding: 11

Value of short interest: $US2.6 billion

Source: Goldman Sachs


8. BB&T Corp.

REUTERS/Molly RileyPeople walk past a BB&T bank in Alexandria, Virginia July 22, 2010

Ticker:
BBT

Short interest as % of float cap: 6%

Year-to-date return: 30%

Number of hedge funds with stock as a top 10 holding: 1

Value of short interest: $US2.6 billion

Source: Goldman Sachs


7. Home Depot

Joe Raedle / Getty Images

Ticker:
HD

Short interest as % of float cap: 1%

Year-to-date return: 41%

Number of hedge funds with stock as a top 10 holding: 10

Value of short interest: $US2.6 billion

Source: Goldman Sachs


6. Procter & Gamble

Ticker:
PG

Short interest as % of float cap: 1%

Year-to-date return: 35%

Number of hedge funds with stock as a top 10 holding: 3

Value of short interest: $US2.8 billion

Source: Goldman Sachs


5. Exxon Mobil

REUTERS/Brendan McDermidDarren Woods, Chairman & CEO of Exxon Mobil Corporation attends a news conference at the New York Stock Exchange (NYSE) in New York, U.S., March 1, 2017.

Ticker:
XOM

Short interest as % of float cap: 1%

Year-to-date return: 6%

Number of hedge funds with stock as a top 10 holding: 1

Value of short interest: $US2.9 billion

Source: Goldman Sachs


4. Intel Corp.

Alexander Tolstykh/Shutterstock

Ticker:
INTC

Short interest as % of float cap: 1%

Year-to-date return: 27%

Number of hedge funds with stock as a top 10 holding: 3

Value of short interest: $US3.2 billion

Source: Goldman Sachs


3. AT&T Inc.

Ticker:
T

Short interest as % of float cap: 1%

Year-to-date return: 47%

Number of hedge funds with stock as a top 10 holding:3

Value of short interest: $US4 billion

Source: Goldman Sachs


2. AbbVie Inc.

ReutersFILE PHOTO: A screen displays the share price for pharmaceutical maker AbbVie on the floor of the New York Stock Exchange

Ticker:
ABBV

Short interest as % of float cap: 4%

Year-to-date return: 2%

Number of hedge funds with stock as a top 10 holding: 8

Value of short interest: $US5.2 billion

Source: Goldman Sachs


1. Bristol-Myers Squibb

ReutersLogo of global biopharmaceutical company Bristol-Myers Squibb is pictured on the blouse of an employee in Le Passage

Ticker:
BMY

Short interest as % of float cap: 9%

Year-to-date return: 17%

Number of hedge funds with stock as a top 10 holding: 11

Value of short interest: $US8.5 billion

Source: Goldman Sachs

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