- Goldman Sachs shares its list of top 10 stocks hedge funds are betting against the most.
- The firm's short basket has a median market cap of $71 billion versus the $20 billion median for the market.
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 Friday 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 stocks with the "highest total dollar value of short interest outstanding." The basket has a median market cap of $71 billion versus the $20 billion median for the market.
Here are the top 10 stocks in Goldman's very important short positions basket.