These are heady times for the nation's top hedge fund managers. I've conducted a deep review of the top 20 holdings of the nation's most famous fund managers, and the relative gains or losses since those holdings were acquired. The recent performance has been remarkable: More than 85% of their recent trades (according to recent 13-F filings) are currently profitable.
Their stock-picking prowess is surely in evidence, though it doesn't hurt that the Dow Jones Industrial Average (DJIA) has risen for seven straight months. Yet even these top managers make mistakes. Almost every one of them is holding a dud in their portfolio. The holding has slumped in value since they bought in, implying they were either flat wrong, or just premature. These managers are expected to update their holdings with fresh 13-F filings in the next two weeks, so it will be interesting to see whether they've doubled down on these laggards, or are cutting their losses.
For the rest of us, these laggards may point the way to value. Having the chance to buy stocks that are now quite cheaper could be a way to piggyback on these pros without overpaying. Here's a short list of losing picks among top fund managers...
Running through this list, a clear theme emerges. Investments in natural resource stocks have proven ill-timed.