Presenting The Latest Hedge Fund Hotel: These Are The Most Beloved Stocks By Hedge Funds At September 30

Tyler Durden's picture

Every quarter, Goldman's David Kostin conveniently compiles a list of the 50 stock that "matter the most" to hedge funds, which is simply a polite way to define the "hedge fund hotel", or the companies which are expected to generate the most alpha. As the name implies these are the names that more so than the S&P 500, or the Nasdaq, determine the fate of Wall Street's richest, because while bankers may comprise the 0.1%, hedge funders constitute the 0.0001%. Why is this list significant? Because just like gold has a liquidation threat associated to it each and every day as it is the item to be sold when the margin calls start, at some point even the gold runs out, and funds will be forced to sell their paper winners, the bulk of which can be found in the top ten places on the list below. Which is why, like last quarter, we caution anyone still long AAPL, GOOG and MSFT. When the trapdoor opens, it is the top 3 stocks on this list that will get hit the most as those who were first, become last.

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GubbermintWorker's picture

And for everything else.... Mastercard!

spiral_eyes's picture

"Other diversified financial services", bitchez.

paarsons's picture

All my money is in pork and beans.

Anyway, seasons greetings.  And go LSU.

mediaprizm's picture

Thanks for informative and helpful post, obviously in your blog everything is good.If you post informative comments on blogs it fetches you a lot.
Hotel Designers

jcaz's picture

Wow, some real snoozers in there;

Alpha?   Looks more like trying to settle down shaky clients with a quasi-mutual fund........

MillionDollarBonus_'s picture

You forget that many of these funds hold mean-variance optimized portfolios, so return to risk ratios are of a professional standard. I'm sick and tired of redneck day traders criticising experts who have spent years studying advanced portfolio theory.

jcaz's picture

MDB!   Your Mom let you out of her basement for the weekend?

Your post defines the term "Pseudointellectual";   Stop using Wickopedia, your terms don't even match up.

Amusing how few you snow on this board..........


narapoiddyslexia's picture

"experts who have spent years studying advanced portfolio theory..."

Which takes us to Markowitz and then straight to Milton Friedman. God, we have so many reasons to thank those Chicago economists!

Where would we be without them?



hedgeless_horseman's picture



Will you just look at that chart of fund holdings?  

Can't help but think that the ghost of Bernie Cornfeld rides again.


By definition, diversity guarantees mediocrity.  

Many fools may pay for mediocrity...but only for a little while.

trav7777's picture

bbbut...I have been told diversity is our strength.  In fact, there is a black studies department at some college that wrote that desegregation was an advantage to WHITE students as a result that they got access to diversity being bused in.

falak pema's picture

hobby horse; like black dikks are kings of the combo. Lets dance to that tune. Why does prejudice so rhyme with jaundice?

JPM Hater001's picture


Where is the Dr Paul Krugman fellow?  Ever notice how you never see Clark Kent and Superman at the same time?

Well, this is nothing like that.  Just a sad footnote in history.  Poor MDB.

knukles's picture

Marla never sees Tyler and the Narrator at the same time, either.  But then again, that's a man dealing with his alter ego. 
Not a man embracing his own ignorance.

Got some bad bad news for MDB, BTW. 
There are some of us here who are neither day traders nor ignorant of modern financial theory and practice.  I myself, have published in serious professional journals and texts and have professionally, successfully managed institutional monies for some 30 years. 
Have you, MDB?
Have you published?
Have you managed money professionally?
Has a portion of your master's thesis been used as required reading in an MBA course?

Just askin', ya know. 

falak pema's picture

Bare knuckles play of fight club magnitude. I gasp in applause at the incisive thrust of impressive track record. Autoproclaimed but probably merited, as I don't doubt the rectitude of  your mental boner.

Just tellin', ya know.

Alien Invader's picture


You are a wanker! All that MPT does is try and eliminate systematic risk. If your portfolio is comprised of a bunch of dog shiat stocks then as it goes down the crapper it will do so, but with less volatility than if you were holding a "non-diversified" portfolio. MSFT come on!


Me thinks you are a failed GS intern. Go suck some wisdom out of Llyods cack!

Unprepared's picture

A failed GS intern would at least know that's a bunch of bullshit. MDB woke up one day and found himself enrolled into an advanced financial market engineering theory PhD program. The pure shit.

Catflappo's picture

MillionDollarBonus - that you have the name you do, and yet are so brain dead (assuming your post is not sarcastic) is to possibly sum up why the financial world is in tatters.  


I suspect on a like-for-like basis my nick would be something like QuadrillionDollarBonus, and even those in the most menial jobs in society would be named HundredThousandDollarBonus

Smiddywesson's picture

Sockpuppet, your comments reek of Robothink.  You wouldn't be Robo's younger brother would you?

Tyler, get your third alter ego out of my holiday weekend.  :-)


mean-variance optimized portfolios, so return to risk ratios are of a professional standard


LOL, very funny.  Redneck trading saved my account in 2007, so big worded gambling doesn't intimidate me.

Unprepared's picture

MillionDollarBaby is a real professional troll. Robotard is still an amateur compared to him.

Iconoclast's picture

Are you touchy because your million dollar bonus will be paid in shares? Unlucky...

WhiteNight123129's picture

MDB you have a rotten sense of humor, I like that very much!

We have in our industry a lot of fakes who sell because they have a name...I work for a small hedge fund for 11 years and no down year and I am fucking tired of being the ghost of some stupid ass self promoted former high net worth broker, go red necks go rogue pros, fuck the insider hacks of Galleon and SAC, SAC got right on their short squeeze of TLB but then I shorted, they stayed in those stupid asses. SAC has some bad traders too and a lot of insider shit, they very good traders too.






WhiteNight123129's picture

All the good pros know that mean variance is BS.

So I am assuming MDB is probably a pro criticizing the bad pros and getting some people upset while he actually has some sympathy.

Black and scholes is crap, there a lot stocks which can look like Gauss, but when the distribution is Poisson like you make a killing when other people use Gauss, as for in the money Warrants on mining or asset which reprice inflation the premium is ridiculously cheap because some idiots you the treasury curve to price compound rate which is completly disconnected from compound inflation.  BUY 50% IN THE MONEY WARRANTS WITH LONG EXPIRATION, YOU WILL BUY THE BUSINESS FOR HALF PRICE PROVIDED YOU HAVE A TINY BIT OF GOLD. I.E. THE FUTURE PRICE IN TODAYS DOLLARS YOU WILL PAY WILL FOR EXERCISE WILL BE SMALL (THE FUTURE DOLLARS WILL WORTH SHIT),  OR OUT OF THE MONEY CALLS ON EQUITY, EQUITY REPRICES MASSIVE INFLATION, AND SHORT FOREIGN CURRENCY THOSE WILL SLAUGHTERED WITH EURO IMPLOSION COMING (several exits) but that is for the short term.



Freddie's picture

LOL!  Do coke heads write in LONG run-on sentences?  The dude should learn to use a comma or a period once every 50 words. ;-)

Bansters-in-my- feces's picture

Hey MDB,,,,

Have you ever swallowed keynesian cum you never liked...?

Corn1945's picture

MSFT has been dead money for so long. I don't get why people hold it. Even the dividend yield sucks. 

Freddie's picture

MSFT might be a decent swing trade when it goes just below $24 for a bounce to $26. Besides that, you are correct - it is dogshit.

Yamaha's picture

Tune into TED and see why......

trav7777's picture

it makes Gates profits so he can help africans, how can you not want to buy into that?

Taint Boil's picture

Need to help the people with AIDS now don't we?

chunkylover42's picture

MSFT is a parking place for tech money when the market looks like shit.  You can maintain your bench exposure to the sector and not get killed being long beta when the maret goes down.

Freddie's picture


MSFT is sort of like buying a tech treasury bill.

Caviar Emptor's picture

Market is just a barometer for loose monetary policy. If that tightens, disapoints or fails to impress then stocks are a losing proposition. On top of that rides global uncertainty which adds big risk to your capital. 

Missiondweller's picture

That kind of insite is why I love ZH!

Thanks Tyler, a great post.

Unprepared's picture

As the saying goes, "out of site, out of mind."

Freddie's picture

Obama-UAW GM at #7?  LOL!  Must be a payoff or TARP scam for the hedgies.  Trash built by union goons.

LongBallsShortBrains's picture

Your statement is an insult to real goons.

Freddie's picture

LOL!  +1

My apologies to all non-UAW & non-Obama goons.

I think I would rather own Netflix than own GM-Obama-UAW.

High Plains Drifter's picture

yeh sure. look at that list.   hedge funds my ass. what is the definition of a hedgefund?  animal spirits?  oh please......

falak pema's picture

But the real money is in that other hotel across the pond :

nobody lists their sovereign eurobond shorts in this; I'm sure they all have hedges on Euro bonds. 

buzzsaw99's picture

I wouldn't pay a plug nickel for HES.

mayhem_korner's picture



Random points:

Nothing raw materials/essentials in the top 10 (don't argue Pfizer...)

How many years have Newmont and Barrack been in the top 25?

Sector divergence is pretty clear even at this level.


comrade rally monkey's picture



that has to be some kind of backdoor deal for the HF crew to get deferred comp passed thru congress.

css1971's picture

MSFT? Are you kidding? MSFT is a dinosaur.

They had to pay Nokia to use their mobile phone software, and that is when Nokia was desperate to switch their phones to something more modern. Linux has commoditised operating systems and is eating MSFT market share everywhere but the desktop, and Apple are eating it on the desktop.


trav7777's picture

ROTFL, no crapple isn't...hahahahaha.

Last I heard, there was no "red hat" mobile OS or anything like it.  Only CIAgle's Andriod.