econintersect.com
  • 토토사이트
    • 카지노사이트
    • 도박사이트
    • 룰렛 사이트
    • 라이브카지노
    • 바카라사이트
    • 안전카지노
  • 경제
  • 파이낸스
  • 정치
  • 투자
No Result
View All Result
  • 토토사이트
    • 카지노사이트
    • 도박사이트
    • 룰렛 사이트
    • 라이브카지노
    • 바카라사이트
    • 안전카지노
  • 경제
  • 파이낸스
  • 정치
  • 투자
No Result
View All Result
econintersect.com
No Result
View All Result

Want to Buy What the Hedge Funds Do? Read this First!

admin by admin
1월 29, 2012
in 미분류
0
0
SHARES
0
VIEWS

by Guest Author Dee Gill, Y Charts

In the next few weeks, Goldman Sachs’ (GS ) David J. Kostin will publish his quarterly “Hedge Fund Trend Monitor” naming the stocks that managers are most enamored with now. This invariably will tempt some individual investors to follow popular wisdom and buy the shares on the list, particularly the list that shows the 20 companies with the highest percentages (concentrations) of shares held by hedge funds. Perhaps revisiting last year’s experience will moderate that urge.Investors who bought shares individually in all Top 20 stocks last year lived through some particularly gut-wrenching plunges, accompanied by some less-than-moderating rises. Ten stocks marked gains and nine dropped in value. (Novell, whose takeover by Attachmate was well-underway by late 2010, delisted early in the year.) The funds piled first into AutoNation (AN), up 31% in 2011, and second into Sears Holdings (SHLD), down 57%. To get an idea of just how mixed this bag of stocks was, take a look at last year’s performance by the Top 10. They’re in order of popularity ranking.


AN by YCharts


Tenet Healthcare Corporation Stock Chart by YCharts

 

Individual investors hanging on to the list got particularly shafted in late summer, when the hedge funds decided to raise cash. CBRE Group (CBG), a growing commercial real estate management company whose shares had climbed some 40% in early 2011, became a popular piggy bank. Such selling decapitated several companies that had been fine performers.

CBRE Group Stock Chart by YCharts

Ultimately, the 2011 experience just throws a bit of caution on a strategy that traditionally performs very well for investors. According to Goldman’s last report in November, a weighted basket of Top 20 shares has outperformed the market 69% of the time since 2001, by an average 271 basis points per quarter (not annualized). Goldman notes that the strategy tends to work well in an up market but poorly in a down one.


For individual investors, it makes perfect sense to tap into the wisdom of people who usually make a whole lot of money picking stocks. Just understand that even they sometimes buy Sears.

 

Related Articles


Investing Articles from Y-Charts

Investing Articles from Dee Gill


About the Author

Dee Gill is an editor for the YCharts Pro Investor Service which includes professional stock charts,stock ratings and portfolio strategies. YCharts® Pro offers proven stock ratings, data downloads, portfolio strategies and avanced stock screening. Free 14 Day Trial is available.

Previous Post

A Note from George Orwell with Current Perspective

Next Post

Greece Solution Near?

Related Posts

Bitcoin Is Finally Trading Perfectly Like 'Digital Gold'
Economics

Bitcoin Is Finally Trading Perfectly Like ‘Digital Gold’

by admin
Namibia Will Regulate And Not Ban Crypto With New Law
Finance

Namibia Will Regulate And Not Ban Crypto With New Law

by admin
6,746 ETH Valued At $12M Was Just Burned
Economics

6,746 ETH Valued At $12M Was Just Burned

by admin
Bitcoin Is Steady Above $29,000 Awaiting US NFP Figures
Economics

Bitcoin: What Next After Consolidation Ends?

by admin
US Government Offloads Another 8,200 Bitcoin – On-chain Data
Economics

US Government Offloads Another 8,200 Bitcoin – On-chain Data

by admin
Next Post

Greece Solution Near?

답글 남기기 응답 취소

이메일 주소는 공개되지 않습니다. 필수 필드는 *로 표시됩니다

Browse by Category

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Browse by Tags

adoption altcoins bank banking banks Binance Bitcoin Bitcoin market blockchain BTC BTC price business China crypto crypto adoption cryptocurrency crypto exchange crypto market crypto regulation decentralized finance DeFi Elon Musk ETH Ethereum Europe Federal Reserve finance FTX inflation investment market analysis Metaverse NFT nonfungible tokens oil market price analysis recession regulation Russia stock market technology Tesla the UK the US Twitter

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

© Copyright 2024 EconIntersect

No Result
View All Result
  • 토토사이트
    • 카지노사이트
    • 도박사이트
    • 룰렛 사이트
    • 라이브카지노
    • 바카라사이트
    • 안전카지노
  • 경제
  • 파이낸스
  • 정치
  • 투자

© Copyright 2024 EconIntersect