Goldman Sachs recently released its Hedge Fund Trend Monitor, a massive report detailing the Q3 investment moves made by the world's biggest hedge funds.
The report included a list of companies for which huge shares of their outstanding stocks are owned by hedge funds.
Interestingly, Goldman found that if you had invested in these stocks, you would have beaten the markets.
From the report:
The strategy of buying the 20 most concentrated stocks has a strong track record over more than 10 years. Since 2001, the strategy has outperformed the market 67% of the time by an average of 255 bp per quarter (not annualized).
A basket of these stocks returned 10% in Q3 and 15% year-to-date. That compares to 6% and 10%, respectively, for the S&P 500.
We pulled the 20 stocks with the largest hedge fund ownership stakes. All stocks listed have between 17-50% of their outstanding shares owned by hedge funds.
We also included the names of the five hedge funds with the largest stakes.
Motorola Solutions
Ticker:
MSI
Sector:
Information Technology
% owned by hedge funds:
18%
3Q Return:
+6%
YTD Return:
+16%
Major Owners:
Valueact Holdings: 28.9 mil shares
Fir Tree Inc: 5.9 mil shares
Iridian Asset Management: 3.5 mil shares
Soros Fund Management: 2.9 mil shares
Brave Warrior Advisors: 2.2 mil shares
Sources: Goldman Sachs, Bloomberg
BMC Software
Ticker:
BMC
Sector:
Information Technology
% owned by hedge funds:
18%
3Q Return:
-3%
YTD Return:
+19%
Major Owners:
Elliott Management: 12.6 mil shares
Glenview Capital: 5.3 mil shares
Renaissance Technologies: 3.5 mil shares
Corvex Management: 1.8 mil shares
D E Shaw & Co: 1.4 mil shares
Sources: Goldman Sachs, Bloomberg
Coca-Cola Enterprises
Ticker:
CCE
Sector:
Consumer Staples
% owned by hedge funds:
18%
3Q Return:
+12%
YTD Return:
+17%
Major Owners:
Scout Capital: 7.0 mil shares
Adage Capital: 6.4 mil shares
Soroban Capital: 6.0 mil shares
Jana Partners: 4.8 mil shares
Pennant Capital: 4.6 mil shares
Sources: Goldman Sachs, Bloomberg
See the rest of the story at Business Insider
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