GOLDMAN SACHS: These are the 11 stocks most hated by hedge funds

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Andrew Burton/Getty Images

The stock market may be hitting record highs all the time, but under the surface lurk companies that draw the ire of hedge funds.

They span industries ranging from retail to internet software, and they have earned the unfortunate distinction of being either overvalued or downright fundamentally flawed.

To see which stocks bear the biggest burden of hedge fund shorts, the equity strategy team at Goldman Sachs analyzed 821 funds that hold a combined $1.9 trillion in gross equity positions.

Goldman then identified the stocks that have the highest short interest as a percentage of shares outstanding. They limit the screen to companies that have market caps greater than $1 billion and are also held by 10 or more hedge funds.

Here’s a list of the 11 stocks in the index that best fit that criteria:


11. Greenbrier Companies

source
Markets Insider

Ticker: GBX

Subsector: Construction machinery & heavy trucks

Total return year-to-date: 9%

Short interest as % of market cap: 31%

Source: Goldman Sachs


10. Pandora Media

source
Markets Insider

Ticker: P

Subsector: Internet software & services

Total return year-to-date: -25%

Short interest as % of market cap: 32%

Source: Goldman Sachs


9. Frontier Communications

source
Markets Insider

Ticker: FTR

Subsector: Integrated telecom services

Total return year-to-date: -60%

Short interest as % of market cap: 32%

Source: Goldman Sachs


8. Seritage Growth Properties

source
Markets Insider

Ticker: SRG

Subsector: Retail REITs

Total return year-to-date: -7%

Short interest as % of market cap: 33%

Source: Goldman Sachs


7. Big Lots

source
Markets Insider

Ticker: BIG

Subsector: General merchandise stores

Total return year-to-date: -6%

Short interest as % of market cap: 35%

Source: Goldman Sachs


6. Restoration Hardware

source
Markets Insider

Ticker: RH

Subsector: Home furnishing retail

Total return year-to-date: 86%

Short interest as % of market cap: 35%

Source: Goldman Sachs


5. Banc of California

source
Markets Insider

Ticker: BANC

Subsector: Regional banks

Total return year-to-date: 20%

Short interest as % of market cap: 36%

Source: Goldman Sachs


4. Twilio

source
Markets Insider

Ticker: TWLO

Subsector: Internet software & services

Total return year-to-date: -16%

Short interest as % of market cap: 36%

Source: Goldman Sachs


3. BofI Holding

source
Markets Insider

Ticker: BOFI

Subsector: Thrifts & mortgage finance

Total return year-to-date: -17%

Short interest as % of market cap: 38%

Source: Goldman Sachs


2. Avis Budget Group

source
Investing.com

Ticker: CAR

Subsector: Trucking

Total return year-to-date: -35%

Short interest as % of market cap: 42%

Source: Goldman Sachs


1. JCPenney

source
Markets Insider

Ticker: JCP

Subsector: Department stores

Total return year-to-date: -48%

Short interest as % of market cap: 44%

Source: Goldman Sachs


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