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Pro Analysis

Hedge funds hate these 10 stocks, Goldman says

AT&T signage is displayed on a monitor at the New York Stock Exchange in New York.
Michael Nagle | Bloomberg | Getty Images
AT&T signage is displayed on a monitor at the New York Stock Exchange in New York.

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 S&P 500 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.