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 listed which stocks professional managers are short selling the most in its latest "Hedge Fund Trend Monitor" report by Ben Snider on Tuesday.
Shorting is a trading strategy that involves selling borrowed shares with a view that the stock will drop in value and the shares can be bought back later and returned for a profit.
Goldman's very important short positions list is up 18 percent this year through Nov. 20, slightly outperforming the S&P 500's 17 percent gain, according to the firm.
Here are the top 10 stocks in Goldman's very important short positions basket.