The Top Five Hedge Fund Stocks Impacted by the Market Decline
When a train goes off the rails, it doesn't stop with one car. Each car pulls another off until there's no more momentum or no more cars. The same can be said about crowded hedge fund names. When the selling pressure starts, it can be hard to stop.
Symmetric.io looked at its index of high-hedge-fund-ownership names to see how liquidity-fueled hedge fund selling may be manifesting itself in the market. The Symmetric Hedge Fund Concentration Index tracks a basket of companies in which hedge funds hold the highest percentage of the publicly traded equity. Market movement among these companies will disproportionately impact hedge fund investors, over and above other institutions. Year to date, the Symmetric High Hedge Fund Ownership Index is down 6.1%, underperforming the SPY by more than 150 basis points.
The Index has clearly been very sensitive to the market's recent rout. Those investors with higher exposure to the Symmetric Hedge Fund Concentration index should beware.
Biggest YTD Losers Amongst High Concentration Hedge Fund Names
Ticker Name Sector % of Inst. Float owned by HFs YTD Stock Move 2015 Stock Return WMB Williams Cos. (The) Energy 32% -47% -39% LBTYK Liberty Global Inc. Series C Cons. Disc. 28% -20% -9% FLT FleetCor Technologies Inc. Tech 45% -18% -4% JD JD.COM INC ADR Cons. Disc. 51% -16% 39% VRX Valeant Pharmaceuticals International Inc (ONT) Health 32% -16% -29%
More analysis and detail can be found in the 2016 Hedge Fund Crowdedness Report at Symmetric.io
