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Long/Short Investments in L/S Equity: Valuation and Ideas,

The 25 Biggest Longs & 25 Biggest Shorts In The Market Currently

Displayed below are the 25 most overbought and 25 most oversold stocks in the market.

What practical utility does this hold? When there’s a lot of money on a particular stock and the position isn’t going anywhere, it generally means its susceptible to a move in the other direction. For example, for heavily shorted stocks, the more they go up the more likely a “short squeeze” is to occur as shorts abandon their positions to cover losses, which in effect boosts demand for the shares as they’re being sold to the market.

In fact, a simple strategy that has outperformed the market over the past few years has been to simply buy the most oversold shares. From 2014-17 YTD, this strategy has beaten the S&P 500 by over 40%.

The 25 biggest long positions are calculated based on their weighting in active portfolios relative to their weighting in a standard equity benchmark (source: UBS):

1. GOOGL

2. BABA

3. AMZN

4. FB

5. V

6. AAPL

7. TCEHY

8. GOOG

9. MSFT

10. C

11. ARLUF

12. RIO

13. VOD

14. NABZY, NAUBF

15. ORCL

16. BAYZF, BAYRY

17. MA

18. BHP

19. GSK

20. CSLLY

21. ANZBY

22. LYG

23. RAI

24. NVDA

25. SHPG

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The 25 biggest short positions:

1. TSLA

2. CBAUF, CMWAY

3. INTC

4. T

5. KMX

6. BAT

7. NFLX

8. EQT

9. DPZ

10. BXRBF, BXRBY

11. FSUMF, FSUGY

12. GM

13. GWW

14. HBI

15. AMD

16. CAT

17. ADSK

18. NWL

19. NVDA

20. CTL

21. GE

22. RYCEF, RYCEY

23. BUD

24. WYNN

25. ESRX