The stock market may be hitting record highs all the time, but under the surface lurk companies that draw the ire of hedge funds.
They span industries ranging from retail to internet software, and they have earned the unfortunate distinction of being either overvalued or downright fundamentally flawed.
To see which stocks bear the biggest burden of hedge fund shorts, the equity strategy team at Goldman Sachs analyzed 821 funds that hold a combined $1.9 trillion in gross equity positions.
Goldman then identified the stocks that have the highest short interest as a percentage of shares outstanding. They limit the screen to companies that have market caps greater than $1 billion and are also held by 10 or more hedge funds.
Here's a list of the 11 stocks in the index that best fit that criteria:
11. Greenbrier Companies
Subsector: Construction machinery & heavy trucks
Total return year-to-date: 9%
Short interest as % of market cap: 31%
Source: Goldman Sachs
10. Pandora Media
Subsector: Internet software & services
Total return year-to-date: -25%
Short interest as % of market cap: 32%
Source: Goldman Sachs
9. Frontier Communications
Subsector: Integrated telecom services
Total return year-to-date: -60%
Short interest as % of market cap: 32%
Source: Goldman Sachs
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