Hedge Fund Short Selling Favorites

May 28, 2018 James Heinsman Hedge Fund News

Creative Commons 3 – CC BY-SA 3.0 Courtesy of Alpha Stock Images, Photo by Nick Youngson.

Betting that a company’s stock will lose value is called short selling, and hedge fund managers use this strategy as one more way to make their money work hard for them.

We usually look at the most popular investments hedge funds are making– its almost always bets on the belief that the company’s stock price will rise. After all, the great truth of investing in the stock market is its historical, inevitable rise in value over the long term. Betting on downturns is riskier, since it goes against a company’s objectives, and it is a short-term assessment rather than the recommended value investing where your money is in the market for the long haul.

Money managers look for companies that they think are overvalued and bet that the price of the company’s stock will drop. This is a list of companies that Goldman Sachs evaluated as the ones hedge funds have been short selling the most. The list is part of the investment bank’s latest “Hedge Fund Trend Monitor.”

• AT & T: This telecommunications giant has a total short interest of $6.3 billion.

• Intel: This giant in the computer industry makes semiconductors and is the second biggest shorted company with about $3.9 billion bet against the company.

• Walmart: One of retails largest companies, there are $3.5 billion worth of short bets against this hugely successful company.

• Nvidia: This company makes graphics processors and semiconductors. Not long ago it was seen as a company going up. Now investors consider it one of the most overvalued stocks, betting against its rise with $3.3 billion in funds.

• CVS Health and Walt Disney: Both companies have $3.1 billion in bets against them, tying for fifth place.

AT&T, CVS Health, Hedge Fund Trend Monitor, Intel, Nvidia,

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