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Pro Analysis

Hedge funds hate these 10 stocks, Goldman says


A man takes a picture of the Nvidia DGX-1 supercomputer during a news conference at the Computex computer expo in Taipei, Taiwan, on May 30, 2016.
Sam Yeh | AFP | Getty Images
A man takes a picture of the Nvidia DGX-1 supercomputer during a news conference at the Computex computer expo in Taipei, Taiwan, on May 30, 2016.

One of the main ways hedge funds make money is betting against companies they believe are overvalued, so investors should be wary of stocks with high levels of so-called short interest.

Goldman Sachs on Tuesday shared with clients which stocks the smart money is short selling the most, according to the firm's latest "Hedge Fund Trend Monitor" report.

The firm's very important short positions basket consists of 50 S&P 500 stocks with the "highest total dollar value of short interest outstanding." The basket has a median market cap of $75 billion versus the $21 billion median for the market.

Here are the top 10 stocks in Goldman's very important short positions basket.