Charting The High-Beta Horror Of Hedge Funds

Tyler Durden's picture

Two weeks ago we highlighted the dismal performance (and massively over-crowded momentum factor tilt) of the 2-and-20 crowd relative to a passive equity ETF investment over the past few years. The reality is, in a Central Bank systemically-driven, high correlation, low dispersion world, the herding of hedge fund cats (with expert networks now dead) leaves them massively over-exposed and chasing the same relative returns as their mutual fund index-tracking peers - for fear of the career-limiting (Tilson-esque) miss of the great bull market's next leg. Apropos of this, Goldman's index of the most-widely-held stocks by hedge-funds is back to levels not seen since March 2009 and down a whopping 7.2% in Q2 of this year as all that momentum fades. Interestingly JNJ is the most widely held (by $ amount) short among hedge funds and of course Apple is the most widely held long.


Most widely held longs...


Most widely held shorts...


Source: Goldman Sachs

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Meesohaawnee's picture

High beta horror? not sure about that. We  got an Iramp job. No horror when ben has your back.

Lost Wages's picture

Hedge funds are a bunch of high beta whores, am i right guize?

Dr. Kenneth Noisewater's picture

One might say they're Master Betas.

Strut's picture

One might say they're iMaster Betas.


There fixed it for you

HD's picture

Now that all the easy QE is gone - I wonder if the Street will slowly but surely rebel against the Fed. Keeping the S&P at 1400 is meaningless if it doesn't stop client outflows or stop job losses on wall street.

firstdivision's picture

WTI shooting for the moon on the anticipation that next week the build in inventories will be even greater.

Duke of Con Dao's picture

I really should stay on message here and roll out yet again the Goldman Bloody Skull Hood Ornament scene but I think you all want something different:

YouTube - MIDGET v. GIANT: You Didn't Build That, James Dean! says President Obama

here our President questions Jet (James Dean) on the very creation of JETEXAS OIL...   


Ura Bonehead's picture

You know, I guess I really should feel concerned that I am long many more of the Hedgie's top 30 shorts than I am their top 30 longs.  But you know what?  I don't.  In fact, I feel pretty comforted.

Eastwood's picture

The most widely held shorts are the biggest of the mega / large caps. Of course these are going to show large dollar-wise amounts because 1% of $ 398 BB US is still almost $4 BB US. Who cares.

magpie's picture

and still the S&P decides to close @ 1337

so its going to be down to Rothschild vs. Lukashenko lol

oh and i was never under the illusion that it could be stopped, but this way others will be able to utilize the 'creative chaos' as well.

& Kudos for 'The Bankstor Self-Defence League' lol

achtung musik

Eastwood's picture

Isn't ZH talking smack directly at over half its members with this post?

doc_in_the_house's picture

how many hedge funds (gambling funds)

are LONG...flopbook (FB)? LOL !!!

I bought mine at 26 and change and dumped them all @ $30 = small profit....watched them go to $32, $33...= me did NOTHING....BUT NOW....AH, they are down from $29 to $26 and change !!! LOL!!! down AH bc zynga missed earnings...LOL !!!

i'll gladly buy flopbook @ LOW 20s for a FLOP (flip) to $25. LOL !!! @ the stupid performance chasers who bought in the low 30s...AND those that bought @ $40s when IPO...LOL !!!!!

I should be working's picture

I don't understand most of the shorts.  KO, JNJ, CVX?  I guess the idea is dividend stocks are overbought, but why does anyone think this is on the cusp of changing?  I doubt they have the inside scoop that Bernanke will raise interest rates.