UBS: Here are the 9 most crowded stocks

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A group of subway riders packed into a crowded subway car, much like how the stocks on this list are crowded with active managers.
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Mario Tama/Getty

In a stock market increasingly ruled by machines, it’s still important to know what the humans are doing.

After all, they’re the ones still investing based on such factors as fundamentals and valuations, while their price-insensitive computerized counterparts operate off highly-tuned algorithms.

And following the herd can really pay off when the market is flourishing. The more people that pile into a stock during an up-market, the further its share price will climb.

It’s a momentum-driven strategy that looks simple on the surface, but can backfire in spectacular fashion at the first sign of turbulence. The more crowded a trade, the more painful the fall as investors rush to the exit simultaneously, spurring a vicious unwind.

With all of that considered, UBS has compiled a list of the nine stocks most crowded with active managers. In order to do so, the firm created an active trading portfolio, calculating weights for each company. It then compared those to benchmark index weightings, and ranked the stocks with the highest excess active share.

Here’s a list of the nine stocks identified by UBS as of June 23, arranged in descending order of global active weighting:


9. Priceline Group

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Markets Insider

Ticker: PCLN

S&P Sector: Consumer discretionary

Active weight: 0.1%

Source: UBS


8. Alphabet

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Markets Insider

Ticker: GOOGL

S&P sector: Information technology

Active weight: 0.1%

Source: UBS


7. Alibaba

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Markets Insider

Ticker: BABA

Sector: Internet / e-commerce

Active weight: 0.2%

Source: UBS


6. Visa

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Markets Insider

Ticker: V

Sector: Information technology

Active weight: 0.2%

Source: UBS


5. Microsoft

source
Markets Insider

Ticker: MSFT

Sector: Information technology

Active weight: 0.2%

Source: UBS


4. Amazon

source
Markets Insider

Ticker: AMZN

Sector: Consumer discretionary

Active weight: 0.2%

Source: UBS


3. UnitedHealth Group

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Markets Insider

Ticker: UNH

Sector: Healthcare

Active weight: 0.2%

Source: UBS


2. Broadcom

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Markets Insider

Ticker: AVGO

Sector: Information technology

Active weight: 0.2%

Source: UBS


1. Aflac

source
Markets Insider

Ticker: AFL

Sector: Financial

Active weight: 0.3%

Source: UBS


SEE ALSO:

JPMORGAN: Beware of overcrowding in markets where ‘everyone holds the same position’