Investing.com - Hedge funds have made small fortunes betting that certain stocks will go down because they think they are overvalued.
It's called shorting, and it allows an investor to sell borrowed stocks that can be bought back later at a lower price and
returned to the lender.
If enough investors short a stock it can change sentiment and depress the price, so small investors need to be aware that a stock in their portfolio may be subject to a large amount of short interest.
Goldman Sachs (NYSE:GS) has compiled a list of the 10 stocks shorted the most by hedge funds.
Here are the companies with the total dollar value of short interest.
AT&T (NYSE:T) is the clear number one. Nvidia, one of the best performing stocks in recent years, ranks fourth.
Walt Disney is sixth on the list. Johnson & Johnson (NYSE:JNJ) and Pfizer (NYSE:PFE) are tied for last.
Chances are you have some, if not all, of these popular stocks in your portfolio.