13 Top Hedge Fund
Holdings that Look Promising!
Last week, I discussed the dismal returns that hedge funds
have been giving their investors since they last beat the S&P 500 in 2008. And
I noted that the returns suffered due, primarily, to high management fees and lots
of turnover.
Today, I want to share with you another reason why hedge
fund returns may be lagging: Picking the wrong stocks!
Clearly—although certainly still volatile—you can see that
the market has been on the rise for the past six months. But hedge funds
returns don’t imitate that. And that may be because their most popular holdings
are stocks that—on a technical basis—don’t look very attractive at all.
Goldman Sachs just revealed the top 50 holdings of hedge
funds. I decided to look at each individually and put them through my technical
analysis screen. And I have to say that even I was amazed at the results!
Of those top 50 stocks, only 13 were rated Buy or Strong Buy
by my indicators. Six were Holds and the rest were rated Sell or Strong Sell.
Here are the 13 that look the best:
Company
|
Symbol
|
Price ($)
|
Technical Rating
|
Analyst Reco
|
Apple
|
AAPL
|
572.27
|
Buy
|
1.7
|
Delphi Automotive
|
DLPH
|
29.84
|
Buy
|
1.6
|
Tyco
|
TYC
|
54.60
|
Buy
|
2.0
|
Visa
|
V
|
120.28
|
Buy
|
1.9
|
Yahoo
|
YHOO
|
15.47
|
Buy
|
2.6
|
WellPoint
|
WLP
|
68.84
|
Buy
|
2.0
|
Charter Communications
|
CHTR
|
64.63
|
Buy
|
2.0
|
eBay
|
EBAY
|
41.49
|
Strong Buy
|
2.0
|
Equinix
|
EQIX
|
167.32
|
Strong Buy
|
1.9
|
Dollar Thrifty
|
DTG
|
81.89
|
Strong Buy
|
2.6
|
Mastercard
|
MA
|
416.05
|
Buy
|
1.9
|
News Corp
|
NWSA
|
19.69
|
Buy
|
2.2
|
Williams Companies
|
WMB
|
31.39
|
Buy
|
1.9
|
Now, I’m not suggesting that you run out and buy these
stocks. And please note that technical ratings are pretty short-term in nature.
But if you want to start building your own hedge fund, these might be some
companies to consider.
Tomorrow, I’ll tell you about all the popular hedge fund
holdings that look a lot more like sells than buys to me!
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