December 15th, 2015

These are the 10 most crowded trades among global money managers, UBS says. The biggest underweight stocks might surprise you

Employees walk past a logo of the Swiss banking giant UBS on October 30, 2012 in ZurichFABRICE COFFRINI/AFP via Getty Images

Summary List Placement

UBS, in a new research report, takes a look at the stocks that global active fund managers are most overweight and underweight across various regions. 

Active fund management is the art of a fund manager picking and choosing investments with the goal of delivering performance that beats a funds benchmark or index.

The report provides insight into top active fund managers sentiments in the equity markets with some surprising stocks making it into the both overweight and underweight lists. Top technology stocks Amazon and Apple are among the three biggest underweight holdings, while financial services companies like Visa, Mastercard and PayPal are among the biggest overweights.

In the October 19 report, UBS equity analyst Paul Winter leverages data from FactSet to calculate an investor weight and an active weight across all stocks. The investor weight is calculated by the sum of all holdings in dollar value across the managers and then the weighting of the stocks within this aggregation. For the active weight, Winter compares the investor weight with the relevant equity index benchmark. 

The two weightings help UBS calculate active managers weightings of stocks across regions. The rankings are ordered by active weight.

Here's is the top ten most overweight and underweight stocks globally for this week.

Most Overweight1. Visa Inc - Class ABusiness Insider Markets

Ticker: V

Investor weight: 0.94%

Active weight: 0.30%

Source: UBS

2. Adobe IncBusiness Insider Markets

Ticker: ADBE

Investor weight: 0.64%

Active weight: 0.18%

Source: UBS

3. Alibaba Group Holdings Ltd.Business Insider Markets

Ticker: BABA

Investor weight: 1.26%

Active weight: 0.17%

Source: UBS

4. PayPal Holdings IncBusiness Insider Markets

Ticker: PYPL

Investor weight: 0.59%

Active weight: 0.16%

Source: UBS

5. Mastercard Incorporated - Class ABusiness Insider Markets

Ticker: MA

Investor weight: 0.72%

Active weight: 0.15%

Source: UBS

See the rest of the story at Business Insider

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