SPECIAL

20 Stocks Under The Control Of Hedge Funds (JCP, STZ, HRB, AN, VRSN, FDO, THC, CBG, GT, NFLX, TRIP, LYB, WPX, MSI, BEAM, DLTR)

Steven Perlberg

In the report, Goldman lays out the 20 most "concentrated" stocks, meaning a large share of their market capitalization is owned in aggregate by hedge funds.

In upward trending markets, buying these 20 stocks has been a successful strategy. Less so in a "choppy or flat" market. From the report:

20. E*TRADE Financial

Ticker: ETFC

SectorInvestment Banking & Brokerage 

% owned by hedge funds18%

2Q Return: 18%

YTD Return: 63%

Major Owners:Omega Advisors (7.9 million shares), Select Equity Group (7.6 million shares), Southpoint Capital Advisors (7.5 million shares)

Source: Goldman Sachs, Bloomberg

19. Legg Mason

Ticker: LM

Sector: Asset Management & Custody Banks

% owned by hedge funds: 18%

2Q Return: -3%

YTD Return: 29%

Major Owners:Trian Fund Management (12.8 million shares), Greenlight Capital (2.3 million shares), QVT Financial (842,000 shares)

Source: Goldman Sachs, Bloomberg

18. Wyndham Worldwide

Ticker: WYN

Sector: Hotels Resorts & Cruise Lines

% owned by hedge funds: 18%

2Q Return: -11%

YTD Return: 13%

Major Owners: Iridian Asset Management (5.4 million shares), Lone Pine Capital (4.7 million shares), Partner Fund Management (2.9 million shares)

Source: Goldman Sachs, Bloomberg

17. Zoetis Inc

Ticker: ZTS

Sector: Pharma

% owned by hedge funds: 19%

2Q Return: -7%

YTD Return: NM

Major Owners: Pentwater Capital Management (16.1 million shares), SAC Capital Advisors (7.5 million shares), DE Shaw & Company (6.1 million shares)

Source: Goldman Sachs, Bloomberg

16. Dollar Tree

Ticker: DLTR

Sector: General Merchandise Stores

% owned by hedge funds: 19%

2Q Return: 5%

YTD Return: 26%

Major Owners: Lone Pine Capital (8 million shares), Eton Park Capital Management (5.7 million shares), Blue Ridge Capital (4.2 million shares)

Source: Goldman Sachs, Bloomberg

15. Beam Inc.

Ticker: BEAM

Sector: Distillers & Vintners

% owned by hedge funds: 19%

2Q Return: 0%

YTD Return: 3%

Major Owners: Pershing Square (20.8 million shares), Citadel Advisors (1.3 million shares), York Capital Management (929,000 shares)

Source: Goldman Sachs, Bloomberg

14. Motorola Solutions

Ticker: MSI

Sector: Communications Equipment

% owned by hedge funds: 20%

2Q Return: -9%

YTD Return: 3%

Major Owners: ValueAct Holdings (28.9 million shares), Fir Tree Incorporated (8 million shares), Iridian Asset Management (4 million shares)

Source: Goldman Sachs, Bloomberg

13. WPX Energy

Ticker: WPX

Sector: Oil & Gas Exploration & Production

% owned by hedge funds: 20%

2Q Return: 18%

YTD Return: 24%

Major Owners: Taconic Capital Advisors (12.8 million shares), Levin Capital Strategies (3.4 million shares), Encompass Capital Advisors (3.3 million shares)

Source: Goldman Sachs, Bloomberg

12. LyondellBasell Industries NV

Ticker: LYB

Sector: Commodity Chemicals

% owned by hedge funds: 20%

2Q Return: 5%

YTD Return: 21%

Major Owners: Viking Global Investors (10.5 million shares), Discovery Capital Management (4.5 million shares), DE Shaw & Company (3.5 million shares)

Source: Goldman Sachs, Bloomberg

11. Tripadvisor

Ticker: TRIP

Sector: Internet Retail

% owned by hedge funds: 20%

2Q Return: 16%

YTD Return: 68%

Major Owners: Pennant Capital Management (3.4 million shares), Coatue Management (3.3 million shares), Par Capital Management (3.1 million shares)

Source: Goldman Sachs, Bloomberg

10. Netflix

Ticker: NFLX

Sector: Internet Retail

% owned by hedge funds: 21%

2Q Return: 12%

YTD Return: 174%

Major Owners: Icahn Associates (5.5 million shares), Coatue Management (1 million shares), Arrowstreet Cap (950,000 shares)

Source: Goldman Sachs, Bloomberg

9. Goodyear

Ticker: GT

Sector: Tires & Rubber

% owned by hedge funds: 22%

2Q Return: 21%

YTD Return: 36%

Major Owners: Appaloosa Management (22 million shares), SAC Capital Advisors (9.3 million shares), Lombard Odier Asset Management (2.4 million shares)

Source: Goldman Sachs, Bloomberg

8. CBRE Group

Ticker: CBG

Sector: Real Estate Services

% owned by hedge funds: 23%

2Q Return: -7%

YTD Return: 11%

Major Owners: ValueAct Holdings (32 million shares), Blum Capital Partners (15 million shares), Select Equity Group (6.3 million shares)

Source: Goldman Sachs, Bloomberg

7. Tenet Healthcare

Ticker: THC

Sector: Health Care Facilities

% owned by hedge funds: 24%

2Q Return: -3%

YTD Return: 24%

Major Owners: Glenview Capital Management (9.8 million shares), Samlyn Capital (2.1 million shares), Blue Ridge Capital (2.1 million shares)

Source: Goldman Sachs, Bloomberg

6. Family Dollar Stores

Ticker: FDO

Sector: General Merchandise Stores

% owned by hedge funds: 24%

2Q Return: 6%

YTD Return: 13%

Major Owners: Trian Fund Management (8.3 million shares), Paulson & Co (7.4 million shares), Highfields Capital Management (3.1 million shares)

Source: Goldman Sachs, Bloomberg

5. VeriSign Inc.

Ticker: VRSN

Sector: Internet Software & Services

% owned by hedge funds: 25%

2Q Return: -6%

YTD Return: 25%

Major Owners: Lone Pine Capital (7.4 million shares), Jana Partners (4.3 million shares), Renaissance Technologies (4.1 million)

Source: Goldman Sachs, Bloomberg

4. Autonation

Ticker: AN

Sector: Automotive Retail

% owned by hedge funds: 25%

2Q Return: -1%

YTD Return: 17%

Major Owners: RBS Partners (20.2 million shares), Horizon Asset Management (3.3 million shares), Kinetics Asset Management (2.7 million shares)

Source: Goldman Sachs, Bloomberg

3. H&R Block

Ticker: HRB

Sector: Specialized Consumer Services

% owned by hedge funds: 26%

2Q Return: -5%

YTD Return: 62%

Major Owners: Viking Global Investors (30 million shares), Lone Pine Capital (7.6 million shares), Hoplite Capital Management (7 million shares)

Source: Goldman Sachs, Bloomberg

2. Constellation Brands

Ticker: STZ

Sector: Distillers & Vintners

% owned by hedge funds: 30%

2Q Return: 9%

YTD Return: 51%

Major Owners: Kensico Capital Management (7.1 million shares), Senator Investment Group (4.1 million shares), Corvex Management (4 million shares)

Source: Goldman Sachs, Bloomberg

1. J.C. Penney

Ticker: JCP

Sector: Department Stores

% owned by hedge funds: 36%

2Q Return: 13%

YTD Return: -30%

Major Owners: Pershing Square (39 million shares), Soros Fund Management (19 million shares), Perry Corp (16 million shares)

Source: Goldman Sachs, Bloomberg

Now see the shorts

GOLDMAN: Here Are 24 Stocks That Hedge Funds Are Shorting Like Crazy>

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