Top Hedge Fund Stock Buys

(TheStreet) -- Every quarter, the market monitors the 13F filings of institutional investors such as hedge fund managers and mutual funds to see what stocks the so-called "smart money" is getting into and out of.

A 13F filing is a quarterly portfolio disclosure that every institutional investor who manages more than $100 million worth of assets must make to the Securities and Exchange Commission.
The buys and sells of hedge funds usually make for the most interesting reads, so TheStreet collated the top 10 stocks in which hedge funds raised their stake the most during the second quarter. We also looked for the lowest possible price the institutions may have bought the stock at during the second quarter, as clues for what might make an attractive level to buy the stock.

But while these stocks should definitely be on an investor's radar, it might not be wise to rush out and buy. The disclosures by the biggest investors are often made as much as 45 days after the end of the last quarter and the fund manager could have changed his position in the meantime.

Fund managers such as Steve Cohen, George Soros and John Paulson (above) trade an enormous number of stocks every quarter and move in and out of stocks at a rapid pace.

The filings also disclose only long positions, so it is possible that hedge funds, famous for complex trading strategies, might be short the same stock.

The following are the top ten stocks that figured in the buy list of hedge funds in the second quarter. Financial firms and companies undergoing corporate restructurings were popular picks for the market heavyweights.

10. PMI Group (NYSE: PMI)

Current Market Price: $2.93

Second Quarter Lowest Price: $2.77

Year-to-Date Return: 16.3%

To read the rest, head over to TheStreet.com