Market Overview

Explaining A 'Crowded Trade,' And The Top 10 Cramped Plays Right Now

Share:
Explaining A 'Crowded Trade,' And The Top 10 Cramped Plays Right Now
Related AAPL
This Day In Market History: The Dow's Final Pre-Crisis Milestone
Upcoming Earnings: Microsoft Close To All Time Highs Ahead Of Thursday's Results
Bill Fleckenstein: Market Could Crash 'Within 6 Months' (Podcast) (Seeking Alpha)
Related AFL
22 Stocks Moving In Friday's Pre-Market Session
Earnings Scheduled For April 25, 2018
Dividend Sensei's Portfolio Update 43: The 3 Essential Things All Investors Need To Get Rich (Seeking Alpha)

Simply put, a "crowded trade" refers to a stock that is widely held across active managers in different countries across the world.

Analysts at UBS compiled a list of the top 10 crowded trades based on the sum of all the "holdings in dollar value across all the active managers and calculate the weights of stocks in this active trading portfolio." Investors can likely come to one of two conclusions regarding a "crowded trade" stock:

  • If so many fund managers across the world own a stock they must do so for a reason and expect a superior return.
  • If so many fund managers across the world own a stock then it is likely too late for the individual investor to buy the stock and expect a superior return.

Investors are free to come to their own conclusions as to how to view a "crowded trade."

Overweight Names

Here are the top 10 Overweight names as compiled by UBS.

  • AFLAC Incorporated (NYSE: AFL).
  • Alibaba Group Holding Ltd (NYSE: BABA).
  • UnitedHealth Group Inc (NYSE: UNH).
  • Microsoft Corporation (NASDAQ: MSFT).
  • Broadcom Ltd (NASDAQ: AVGO).
  • Visa Inc (NYSE: V).
  • Priceline Group Inc (NASDAQ: PCLN).
  • Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL).
  • Comcast Corporation (NASDAQ: CMCSA).
  • Medtronic plc. Ordinary Shares (NYSE: MDT).

Underweight Names

Here are the top 10 Underweight names as compiled by UBS.

  • Apple Inc. (NASDAQ: AAPL).
  • Exxon Mobil Corporation (NYSE: XOM).
  • Johnson & Johnson (NYSE: JNJ).
  • Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B).
  • Procter & Gamble Co (NYSE: PG).
  • General Electric Company (NYSE: GE).
  • Tokyo-listed Toyota Motor Corp (TYO: 7203).
  • London-listed HSBC Holdings plc (LON: HSBA).
  • Australia-listed Commonwealth Bank of Australia (ASX: CBA).

Latest Ratings for AAPL

DateFirmActionFromTo
Jun 2018ArgusMaintainsBuyBuy
May 2018Maxim GroupDowngradesBuyHold
May 2018Morgan StanleyMaintainsOverweightOverweight

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: Crowded TradeAnalyst Color Long Ideas Education Short Ideas Analyst Ratings Trading Ideas General Best of Benzinga

 

Related Articles (AAPL + AFL)

View Comments and Join the Discussion!