GOLDMAN SACHS: These are the 11 stocks most hated by hedge funds
By Joe Ciolli From Business Insider
The stock market may be hitting record highs all the time, but under the surface lurk companies that draw the ire of hedge funds.
They span industries ranging from retail to internet software, and they have earned the unfortunate distinction of being either overvalued or downright fundamentally flawed.
To see which stocks bear the biggest burden of hedge fund shorts, the equity strategy team at Goldman Sachs analyzed 821 funds that hold a combined $1.9 trillion in gross equity positions.
Goldman then identified the stocks that have the highest short interest as a percentage of shares outstanding. They limit the screen to companies that have market caps greater than $1 billion and are also held by 10 or more hedge funds.
Here’s a list of the 11 stocks in the index that best fit that criteria:
11. Greenbrier Companies
Markets Insider
Subsector: Construction machinery & heavy trucks
Total return year-to-date: 9%
Short interest as % of market cap: 31%
Source: Goldman Sachs
10. Pandora Media
Markets Insider
Subsector: Internet software & services
Total return year-to-date: -25%
Short interest as % of market cap: 32%
Source: Goldman Sachs
9. Frontier Communications
Markets Insider
Subsector: Integrated telecom services
Total return year-to-date: -60%
Short interest as % of market cap: 32%
Source: Goldman Sachs
8. Seritage Growth Properties
Markets Insider
Subsector: Retail REITs
Total return year-to-date: -7%
Short interest as % of market cap: 33%
Source: Goldman Sachs
7. Big Lots
Markets Insider
Subsector: General merchandise stores
Total return year-to-date: -6%
Short interest as % of market cap: 35%
Source: Goldman Sachs
6. Restoration Hardware
Markets Insider
Subsector: Home furnishing retail
Total return year-to-date: 86%
Short interest as % of market cap: 35%
Source: Goldman Sachs
5. Banc of California
Markets Insider
Subsector: Regional banks
Total return year-to-date: 20%
Short interest as % of market cap: 36%
Source: Goldman Sachs
4. Twilio
Markets Insider
Subsector: Internet software & services
Total return year-to-date: -16%
Short interest as % of market cap: 36%
Source: Goldman Sachs
3. BofI Holding
Markets Insider
Subsector: Thrifts & mortgage finance
Total return year-to-date: -17%
Short interest as % of market cap: 38%
Source: Goldman Sachs
2. Avis Budget Group
Investing.com
Ticker: CAR
Subsector: Trucking
Total return year-to-date: -35%
Short interest as % of market cap: 42%
Source: Goldman Sachs
1. JCPenney
Markets Insider
Subsector: Department stores
Total return year-to-date: -48%
Short interest as % of market cap: 44%
Source: Goldman Sachs
IMAGE: Andrew Burton/Getty Images
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