Insider Monkey prepared the list of top 10 stocks enormously owned by hedge funds. We require at least 70 hedge funds owning these stocks and rank them by the percent of the company owned by hedge funds (source data). You might interpret this list as a “hedge fund favorite stock list” or a “hedge fund risky stock list”. Clearly hedge funds think highly of these stocks and they accumulated huge amounts of shares. However, it is also possible to see that these stocks would plunge much more than other stocks if negative news hit the company and hedge funds try to exit their positions all at once. Here are these 10 stocks enormously owned by hedge funds:
1. Liberty Media Starz Group (LSTZA): 29% of Liberty Media was owned by 80 different hedge funds at the end of September. It would take hedge funds 40 days’ average volume to liquidate their positions assuming it is possible in the event of adverse news. There were several LSTZA insiders selling their shares in December.
2. Aon Corp (AON): 24% of Aon Corp is owned by 88 hedge funds. It would take them 32 days’ average volume to exit their positions. Lester B. Knight, an AON director, purchased 50,000 shares at the end of November as well, showing insider support for this stock. The stock went up by more than 10% since then. Glenview’s Larry Robbins also has a large AON position.
3. Genzyme (GENZ): 23% of Genzyme is owned by 97 hedge funds. It wouldl take 15 days’ average volume to exit.
4. CF Industries Holdings Inc (CF): 20% of CF Industries Holdings is owned by 72 hedge funds. It would take only 6 days’ average volume to liquidate these positions.
5. Viacom Inc (VIA.B): 17% of Viacom Inc is owned by 77 hedge funds. It would take hedge funds 22 days to exit. Chase Coleman’s Tiger Global Management also owns more than $300 million of Viacom.
6. Potash Corp (POT): 16% of Potash Corp (NYSE:POT) is owned by 114 different hedge funds. It would take only 7 days’ average volume to liquidate these positions. Dan Loeb’s Third Point and Mohnish Pabrai also own large quantities of Potash.
7. Wellpoint Inc (WLP): 11% of Wellpoint Inc is owned by 94 hedge funds. It would take 8 days’ average volume to exit these positions. David Tepper’s Appaloosa Management has some WLP shares.
8. Xerox Corp (XRX): 9% of Xerox is owned by 73 hedge funds. It would take them 8 days to liquidate their positions. Lynn Blodgett, Executive Vice President, exercised her stock options on Monday and netted more than $2 million. Chase Coleman and Larry Robbins are among the hedge fund managers who own XRX.
9. Alcon Inc (ACL): 8% of Alcon Inc is owned by hedge funds but it would take them 25 days’ average volume to exit their positions. Third Point owns Alcon shares.
10. Anadarko (APC): 8% of Anadarko is owned by 77 hedge funds. It would take them 6 days to liquidate these positions. T. Boone Pickens has some Anadarko shares in his hedge fund.
This is a guest post written by Insider Monkey.
Start Off 2011 by Improving Your Financial Health: Join the winning team of stock pickers with Wall St. Cheat Sheet’s acclaimed premium newsletter >>