50 Hedge Fund Holdings

February 20, 2014

United States

Hedge Fund Trend Monitor Portfolio Strategy Research

Hedge fund long positions continue to outperform as turnover falls Hedge fund portfolio turnover continues to fall but the record of long position outperformance persists. Our Hedge Fund VIP list beat the S&P 500 by 900 bp in 2013 (41% vs. 32%) and has posted a positive absolute YTD return (1.2%) while the S&P 500 declined modestly (-0.2%). Activist funds have returned 40% during the past two years vs. 23% for the typical equity hedge fund. More than 25 activist campaigns have been launched YTD. This report analyzes 778 hedge funds with $1.8 trillion of gross equity positions ($1.2 trillion long and $570 billion short) at the start of 2014.

“Most important” hedge fund positions continue to outperform Our Hedge Fund VIP list (Bloomberg ticker: <GSTHHVIP>) has returned 1.2% YTD vs. -0.2% for the S&P 500, following 900 bp of excess return in 2013 (41% vs. 32%). Top 5 stocks: GM, GOOG, AAPL, AIG, and HTZ.

Activism jumps 23% since 2011 to reach highest level in five years Activism will likely persist in 2014, with 25 campaigns already launched YTD. Activist hedge funds have posted returns of 40% during the past two years compared with a 23% return for the typical equity hedge fund.

Turnover of hedge fund positions drops to new low of 28% in 4Q The turnover of the largest quartile of holdings also fell to an all-time low of 14%. The average fund holds 63% of long assets in its top 10 positions compared with 31% for the average mutual fund.

Activist target 3-month post-announcement relative performance

Source: SharkRepellent via FactSet, IDC, and Goldman Sachs Global Investment Research.

Amanda Sneider, CFA (212) 357-9860 [email protected] Goldman, Sachs & Co.

David J. Kostin (212) 902-6781 [email protected] Goldman, Sachs & Co.

Stuart Kaiser, CFA (212) 357-6308 [email protected] Goldman, Sachs & Co.

Ben Snider (212) 357-1744 [email protected] Goldman, Sachs & Co.

Rima Reddy (801) 884-4794 [email protected] Goldman, Sachs & Co.

Aaron Woodside (212) 902-9693 [email protected] Goldman, Sachs & Co.

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to www.gs.com/research/hedge.html. Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

The Goldman Sachs Group, Inc. Global Investment Research

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February 20, 2014 United States

Goldman Sachs Global Investment Research 2

Table of Contents

Goldman Sachs Hedge Fund Trend Monitor 3 Hedge funds held steady as the market pulled back in January 4 Activist campaigns have steadily increased 5 “Stocks that matter most”: The hedge fund VIP list 8 Estimating the short side: The Very Important Short Position list 10 The impact of hedge funds: Look at the “concentrated” positions 12 Exploring hedge fund net exposure 14 Sectors: Funds keep steady allocations 16 Size: Large-cap stocks account for almost 50% of typical fund 18 Hedge fund portfolio density and position turnover 20 Hedge funds and ETFs: Hedging tools, not investment vehicles 21 Appendix A: Drawbacks of our hedge fund holding analysis 22 Appendix B: Hedge fund data tables 23 Appendix C: 100 largest hedge funds ranked by equity assets 36 Appendix D: GS Portfolio Strategy Baskets on Bloomberg 37 Equity basket disclosure 38 Disclosure Appendix 39

Turnover for our Hedge Fund VIP Basket (<GSTHHVIP>) and Very Important Short Position Basket (<GSTHVISP>)

Note: The ability to trade this basket will depend upon market conditions, including liquidity and borrow constraints at the time of trade.

Source: Goldman Sachs Global Investment Research.

Turnover for our Turnover for ourHedge Fund VIP Basket Very Important Short Position Basket

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REGN UPS



Goldman Sachs Hedge Fund Trend Monitor

This Hedge Fund Trend Monitor analyzes 778 hedge funds with $1.8 trillion of gross equity positions ($1.2 trillion long and $570 billion short). Our analysis of hedge fund positions at the start of 1Q 2014 is based on 13-F filings as of February 14, 2014. We list 9 conclusions below.

1. VERY IMPORTANT POSITIONS: Our Hedge Fund VIP list (Bloomberg: <GSTHHVIP>) continues to outperform in 2014 following 900 bp of excess return in 2013 (41% vs. 32%). The basket contains the 50 stocks that appear most frequently among the top 10 holdings of fundamentally-driven hedge fund portfolios. The VIP list has returned 1.2% YTD, 140 bp better than the S&P 500. Top 5 stocks: GM, GOOG, AAPL, AIG, and HTZ. Turnover in our VIP basket was below its historical average, with 13 new constituents: AAL, AGO, COLE, ENDP, GILD, HCA, LAMR, LBTYK, NRF, OCN, STZ, TMUS, and VC. See page 8.

2. ACTIVISM: The number of activist campaigns has risen by 23% during the past two years but remains below the prior peak of 2007 and 2008. We expect activism to continue in 2014, with 25 campaigns already launched YTD. Activist hedge funds have posted returns of 40% during the past two years compared with a 23% return for the typical equity hedge fund. Three of our VIP constituents have open campaigns: EBAY, YHOO, TWC.

3. TURNOVER: Turnover of hedge fund positions continues to drop, falling to a record low of 28% in 4Q as fund portfolios remain static. The turnover of the largest quartile of holdings also fell to an all-time low of 14%. The average fund holds 63% of long assets in its top 10 positions compared with 31% for the average mutual fund. See page 20.

4. RISK: We estimate hedge funds in aggregate operate 54% net long at the portfolio level, the highest ratio in at least a decade. Risk appetite by this metric dipped modestly in mid-2013 but climbed to new highs along with the market to start 2014. See page 14.

5. CONCENTRATION: Our basket of the 20 “Most Concentrated” hedge fund stocks (Bloomberg ticker: <GSTHHFHI>) continues to outperform the S&P 500. We define “concentration” as the share of equity cap owned by hedge funds. Since 2001, the strategy has outperformed the S&P 500 71% of the time by an average of 262 bp per quarter. Following 1700 bp of outperformance in 2013, the basket continues to lead the S&P 500 in 2014 (+1.8% vs. -0.3%). Four new constituents: ALLE, APD, QEP, and CVC. See page 12.

6. PERFORMANCE: Hedge funds returned an average of -0.5% YTD through January, with 82% of funds outperforming the S&P 500 (-3.5%). Last year the typical fund posted a 9.8% return compared with 32% for the S&P 500 and average large-cap core mutual fund. See page 4.

7. ETFs: Hedge funds hold large positions in EM equity, volatility, gold, and bond ETFs. Hedge funds generally use ETFs more as a hedging tool than directional investment vehicles, and most of these positions reflect net shorts. ETFs represent 3% of long holdings, the lowest since 1Q 2010. See page 21.

8. SHORT INTEREST: The S&P 500 short interest ratio reached 3 days to cover in 4Q 2013, the highest since mid-2007. Aggregate dollars of short interest outstanding hit record levels in late 2013 as the S&P 500 reached record highs. The market rally combined with low trading volumes drove the S&P 500 short interest ratio to a six-year high. Page 15.

9. VERY IMPORTANT SHORT POSITIONS: Our Hedge Fund Very Important Short Position basket (<GSTHVISP>) provides a more effective short than the S&P 500. The basket contains the 50 S&P 500 stocks with the highest total dollar value of short interest outstanding that are not in our VIP long basket. Our long VIP/short VISP pair trade has mirrored the HFR Equity Hedge Index with an average quarterly return of 148 bp vs. 141 bp since 2001, but with a higher Sharpe Ratio (0.46 vs. 0.27). See page 11.



Hedge funds held steady as the market pulled back in January The typical hedge fund generated a return of -0.5% in January, compared with -3.5% return for both the S&P 500 and the average large-cap core mutual fund (Exhibit 1). 82% of hedge funds outperformed the S&P 500, and one half posted positive absolute returns. Long/short equity funds returned -0.3%, in line with the average across strategies.

The most popular hedge fund long positions outperformed as the market pulled back in early 2014, demonstrating funds’ stockpicking ability as well as position conviction. Our Hedge Fund VIP list (Bloomberg ticker: <GSTHHVIP>) and High Concentration basket (<GSTHHFHI>) each outperformed the S&P 500 by more than 100 bp in January, despite the 6% risk-off pullback inspired by EM fears and weak economic data.

Exhibit 1: 2014 YTD distribution of hedge fund performance as of January 31, 2014

Source: Lipper, FactSet, Goldman Sachs Asset Management, and Goldman Sachs Global Investment Research.

Top hedge fund long positions also posted exceptionally strong returns in 2013, but shorts hampered overall returns. While the VIP basket returned 41% in 2013, the typical hedge fund returned 9.8%. Fewer than 5% of funds outperformed the S&P 500 last year.

Exhibit 2: 2013 distribution of hedge fund performance as of December 31, 2013

Source: Lipper, FactSet, Goldman Sachs Asset Management, and Goldman Sachs Global Investment Research.

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Activist campaigns have steadily increased

Investor activism has increased in recent years. The number of Russell 3000 activist campaigns rose by 6% to 129 in 2013, following a 15% increase in 2012. However, while the S&P 500 index trades close to an all-time high, the number of announced activist campaigns remains below 2007 and 2008 levels (see Exhibit 3).

Hedge funds participated in 75% of activist campaigns in 2013, the highest share in at least a decade. In a typical year, hedge funds participate in 64% of campaigns (see Exhibit 4). Three constituents of our Hedge Fund VIP list have open campaigns: eBay (EBAY), Yahoo! (YHOO) and Time Warner Cable (TWC).

We expect the number of activist campaigns will remain high in 2014. 25 campaigns have already been announced since the start of the year, more than the 22 campaigns announced during the first two months of 2013.

Exhibit 3: Announced activist campaigns by year as of February 19, 2014; limited to Russell 3000 stocks

Exhibit 4: Activist campaigns by investor type (2005-13) as of February 19, 2014; limited to Russell 3000 stocks

Source: FactSet and Goldman Sachs Global Investment Research.


The majority of campaigns involve maximizing shareholder value or board representation/control. In 2013, maximizing shareholder value was the purpose of 43% of campaigns. Methods include strategic mergers, spin-offs, leverage adjustment, dividends, and share repurchases. Board representation accounted for another 34% of campaigns.

Activism on larger companies is on the rise. Historically, Russell 1000 firms accounted for 32% of activism in the Russell 3000, in line with its share of stocks in the index (34%, 1013/3008). But in 2013, constituents of the Russell 1000 accounted for 38% of campaigns.

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Exhibit 5: Primary purpose of 2013 campaigns as of February 19, 2014; limited to Russell 3000 stocks

Exhibit 6: Share of campaigns by market cap as of February 19, 2014; limited to Russell 3000 stocks



Performance of activist-targeted stocks has been stronger in recent years. Between 2007 and 2009, the median stock underperformed its Russell 3000 sector during the three months following a campaign announcement. After 2009, activist-targeted stocks outperformed their sector by 100-350 bp. The median activist campaign lasts four months.

Post-announcement gains are strongest in the first month. Median sector-relative performance in during months two and three is typically flat to slightly negative.

Exhibit 7: Activist target post-announcement relative performance reached high in 2013 as of February 18, 2014; limited to Russell 3000 stocks

Source: SharkRepellent via FactSet, IDC, and Goldman Sachs Global Investment Research.

Maximize Shareholder

Value43%

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As the number of activist campaigns and the size of targeted stocks grow, non-activist investors should focus on the ability of targeted stocks to sustain returns following a campaign announcement.

Recent campaigns have been more likely to outperform over extended periods of time. While post-announcement outperformance typically decays over longer periods of time, sector-relative outperformance has shown signs of greater endurance in recent years. See Portfolio Manager Toolkit: An Investor’s Cornucopia: Activism, Inventories, The Search for Value & Margins (November 12, 2013) for more information.

Unsurprisingly, the outperformance of activism targets is evident in the performance of activist hedge funds. The HFR Activist Index rose by 21% in 2012, significantly higher than the HFR Equity Hedge Index (+7%). While the Activist Index also outperformed the Equity Hedge Index in 2013 (16% vs. 14%), both indices underperformed the Russell 3000 (+34%).

In January 2014, The HFR Activist Index returned -0.5% versus -0.9% for the HFR Equity Hedge Index and -3% for the Russell 3000.

Exhibit 8: Activist funds outperformed equity hedge funds between 2012 and 2013 as of January 31, 2014

Source: Hedge Fund Research and Goldman Sachs Global Investment Research.

Note on methodology: For our analysis we utilize FactSet’s SharkRepellent database. The universe is limited to Russell 3000 constituents at the time of campaign announcement. Campaign purposes are limited to board control, board representation, director or officer removal, shareholder value maximization, or corporate governance enhancement.

2008 2009 2010 2011 2012 2013Activist Index (40)% 30 % 8 % (8)% 21 % 16 %Equity Hedge (27) 25 10 (8) 7 14Russell 3000 (37) 28 17 1 16 34

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“Stocks that matter most”: The hedge fund VIP list

Our hedge fund VIP list (Bloomberg ticker: <GSTHHVIP>) consists of stocks in which fundamentally-driven hedge funds have a large stake. We define stocks that “matter most” as the positions that appear most frequently among the top 10 holdings within hedge fund portfolios. This specific approach yields a similar list of stocks as simply choosing the largest aggregate long positions. For this analysis, we limit our universe to hedge funds with 10 to 200 distinct equity positions in an attempt to isolate fundamentally-driven investors from quantitative funds or funds that mirror private equity investments.

Our hedge fund VIP list offers investment ideas and tracks long exposure of hedge funds. By construction, the VIP list identifies the 50 stocks whose performance will largely influence the long side of many fundamentally driven hedge funds.

The basket of the 50 stocks that “matter most” has outperformed the S&P 500 by 76 bp on a quarterly basis since 2001, with a Sharpe ratio of 0.29. The VIP basket has outperformed the S&P 500 by 140 bp (+1.2% vs. -0.3%) YTD through February 14. As illustrated in Exhibit 9, the VIP basket outperformed the S&P 500 by more than 720 bp in both 2012 and 2013 (23% vs. 16% in 2012; 41% vs. 34% in 2013).

From an implementation standpoint, the hedge fund VIP list offers an efficient vehicle for investors seeking to “follow the smart money” based on 13-F filings. The VIP basket has a large-cap bias with a median market capitalization of $39 billion compared with $17 billion for S&P 500. Top constituents include GM, GOOG, AAPL, AIG, and HTZ.

Our hedge fund VIP basket is not sector-neutral to the S&P 500. The VIP list contains stocks from eight of the ten sectors, with Utilities and Materials absent. The basket overweights the Consumer Discretionary sector (28%) and underweights Energy (4%) relative to the broad market index.

Turnover for the basket during 4Q 2013 was significantly below the historical average, with 13 new stocks entering the VIP list compared with an average quarterly turnover of 17 stocks since 2001. New constituents are AAL, AGO, COLE, ENDP, GILD, HCA, LAMR, LBTYK, NRF, OCN, STZ, TMUS, and VC (see Exhibit 10).

Exhibit 9: Stocks that “matter most” have outperformed by 76 bp on average each quarter since 2001 (51 quarters) as of February 14, 2014

Source: Lionshares via FactSet, IDC and Goldman Sachs Global Investment Research.

Stocks that "Matter Most"Bloomberg <GSTHHVIP>

Quarterly Relative Return vs. SPXMaximum 674 bp75th Percentile 197 Median 100 25th Percentile (100) Minimum (785)

Standard Deviation 260

Average Excess Return (bp) 76 bpSharpe Ratio 0.29

Hit rate of outperformance 65 %since May 2001

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GSTHHVIP: 50 stocks that “matter most” to hedge funds

Exhibit 10: Very Important Positions (VIP) for hedge funds

Note: Based on our analysis of 618 hedge funds with $762 billion in equity assets that own between 10 and 200 individual stock positions. New stocks in basket listed in bold. Holdings as of December 31, 2013; Pricing as of February 14, 2014.

Source: Lionshares via FactSet, IDC, and Goldman Sachs Global Investment Research.

50 stocks that most frequently appear among the largest 10 holdings of hedge funds

No. of funds No. of funds Averagewith 10 to 200 with stock portfolio weight % of Equity Cap

Equity positions as top 10 when stock owned by TotalCap owning stock holding ranks among Hedge Funds Return

Company Ticker Sub-sector ($ bil) 31-Dec-13 31-Dec-13 Top 10 holdings 31-Dec-13 YTDGeneral Motors GM Automobile Manufacturers $50 114 75 7 % 14 % (12)%Google Inc. GOOG Internet Software & Services 402 88 60 7 3 7Apple Inc. AAPL Computer Hardware 489 92 58 8 3 (2)American Intl Group AIG Multi-line Insurance 72 84 54 7 11 (4)Hertz Global Holdings HTZ Trucking 12 62 40 6 31 (10)Citigroup Inc. C Other Diversified Financial Services 150 70 38 6 4 (5)Time Warner Cable TWC Cable & Satellite 41 63 38 6 17 8Facebook Inc. FB Internet Software & Services 165 58 36 7 7 23Amazon.com AMZN Internet Retail 164 44 33 6 3 (10)Microsoft Corp. MSFT Systems Software 314 47 27 6 2 1JPMorgan Chase JPM Other Diversified Financial Services 219 51 26 5 2 0CBS Corp. CBS Broadcasting 39 50 25 6 17 2Micron Technology MU Semiconductors 26 43 25 6 24 15American Airlines Group, Inc. AAL Airlines 26 52 24 7 11 36Charter Communications CHTR Cable & Satellite 13 46 24 6 38 (5)Liberty Interactive LINTA Catalog Retail 15 34 24 7 13 (3)priceline.com PCLN Internet Retail 66 46 24 6 11 10Twenty-First Century Fox FOXA Movies & Entertainment 74 40 23 6 11 (7)Delta Air Lines DAL Airlines 27 48 22 6 12 14Equinix Inc. EQIX Internet Software & Services 10 33 21 6 47 9Hess Corp. HES Integrated Oil & Gas 27 36 21 7 16 (4)Liberty Global Class C LBTYK Cable & Satellite 21 38 21 7 28 (2)NorthStar Realty Finance Corp. NRF Mortgage REITs 5 35 21 9 48 8Vodafone Sponsored ADR VOD Wireless Telecommunication Services 180 39 21 8 3 (6)Lamar Advertising LAMR Advertising 5 28 20 6 51 (3)Bank of America BAC Other Diversified Financial Services 178 40 19 7 2 7eBay Inc. EBAY Internet Software & Services 71 40 19 5 4 (0)T-Mobile US TMUS Wireless Telecommunication Services 23 35 19 5 13 (7)Yahoo! Inc. YHOO Internet Software & Services 39 36 19 6 9 (5)Assured Guaranty AGO Property & Casualty Insurance 4 26 18 6 34 (0)Anadarko Petroleum APC Oil & Gas Exploration & Production 41 34 18 6 9 3Crown Castle Intl CCI Wireless Telecommunication Services 25 30 18 6 23 2DISH Network Corp. DISH Cable & Satellite 26 31 18 6 21 (2)United Rentals URI Trading Companies & Distributors 8 27 18 6 14 7Visa Inc. V Data Processing & Outsourced Services 144 36 18 5 4 2Visteon Corporation VC Auto Parts & Equipment 4 26 18 7 43 2Actavis ACT Pharmaceuticals 33 26 17 4 13 14Berkshire Hathaway BRK.B Multi-Sector Holdings 283 25 17 7 2 (3)Comcast Corp. CMCSA Cable & Satellite 140 31 17 6 3 3Liberty Global LBTYA Cable & Satellite 33 36 17 6 19 (6)MasterCard MA Data Processing & Outsourced Services 93 40 17 6 4 (7)Ocwen Financial Corporation OCN Thrifts & Mortgage Finance 5 23 17 7 16 (32)Valeant Pharmaceuticals Intl VRX Pharmaceuticals 46 27 17 10 15 19Baidu Sponsored ADR BIDU Internet Software & Services 59 28 16 7 9 (6)Cole Real Estate Investments, Inc. COLE Retail REITs 7 31 16 10 27 7Endo Health Solutions ENDP Pharmaceuticals 8 26 16 9 38 6HCA Holdings HCA Health Care Facilities 22 31 16 5 20 4Constellation Brands STZ Distillers & Vintners 15 30 16 7 29 13Express Scripts Holding ESRX Health Care Services 62 25 15 6 4 9Gilead Sciences GILD Biotechnology 125 25 15 6 2 8

Average $82 42 25 6 % 16 % 2 %Median 39 36 20 6 13 1



Estimating the short side: The Very Important Short Position list

Our Very Important Short Position (Bloomberg ticker: <GSTHVISP>) list tracks short exposure of hedge funds. The equal-weighted basket consists of 50 S&P 500 constituents with the highest total dollar value of short interest outstanding. The VISP basket excludes companies in our long VIP List and stocks with more than 10% of float-adjusted shares held short. The VISP basket has a large-cap bias with a median market capitalization of $74 billion compared with $17 billion for the S&P 500 and $39 billion for the VIP List.

Constituents of this basket are not based on 13-F holdings and this is not a basket of stocks most held short. The median stock has a higher value of short interest compared with the median S&P 500 company ($1.4 billion vs. $0.4 billion) but similar short interest as a percent of float-adjusted shares (about 2% for each). The top five VISP constituents are INTC, T, VZ, XOM, and IBM (see Exhibit 13).

We use the total dollar value of short interest outstanding as an estimate of short portfolio holdings. Short positions in large-cap stocks can still be significant on a total dollar value basis even though the size of these stocks typically leads to lower short interest as a percentage of shares outstanding. We did not adjust our analysis to take into account the impact of convertible arbitrage strategies on short interest outstanding. However, when we incorporated these positions it did not significantly affect the results or the composition of the basket.

The long GSTHHVIP/short S&P 500 pair is one method of tracking hedge fund performance as it replicates the long/short nature of fund holdings, but it is a proxy with shortcomings. The Hedge Fund VIP List consists of an equal weighted basket of 50 stocks whereas the S&P 500 is market cap weighted. S&P 500 stocks with weights greater than 2%, such as Apple (AAPL), are implicitly underweight even if held on the long side. It is also a blunter tool, disregarding information about shorts disclosed by the exchanges. By addressing these issues, we can create a better approximation of hedge fund short-side performance.

The performance of a long GSTHHVIP / short GSTHVISP pair tracks hedge fund performance better than the long GSTHHVIP / short S&P 500 pair. The long/short VIP pair has generated an average quarterly return of 148 bp (5.9% annualized) since 2001, close to the average return of the HFR Equity Hedge index. The Sharpe ratio of the pair has been 0.46, higher than the Equity Hedge index Sharpe ratio of 0.27.

Exhibit 11: Hedge fund performance versus basket pairsas of January 31, 2014

Exhibit 12: Sharpe Ratio of GSTHHVIP/GSTHVISP is 0.46as of January 31, 2014

Source: Hedge Fund Research, IDC and Goldman Sachs Investment Research. Source: Hedge Fund Research, IDC and Goldman Sachs Investment Research.

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Maximum 775 bp 735 bp 1,542 bp75th Percentile 231 336 510 Median 89 168 205 25th Percentile (110) (44) (113) Minimum (1057) (1000) (1997)

Standard Deviation 284 318 523

Avg Return (bp) 75 bp 148 bp 141 bpSharpe Ratio 0.26 0.46 0.27

Hit rate of Performance 66 % 68 % 64 %since June 2001



GSTHVISP: 50 stocks representing important short positions

Exhibit 13: Very Important Short Positions (VISP) for hedge funds

New stocks in basket listed in bold. Short interest as of January 31, 2014; pricing as of February 14, 2014.

Source: FactSet, IDC, and Goldman Sachs Global Investment Research.

50 stocks that represent the largest short positionsSHORT Interest LONG Hedge Fund Holdings

Short Value of AverageInterest Short No. of funds portfolio weight % of Equity Cap

Equity Total as a % of Interest with stock as when stock owned byCap Return Float Cap ($bil) Top 10 holding ranks among Hedge Funds

Company Ticker Sub-sector ($ bil) YTD 31-Jan-14 31-Jan-14 31-Dec-13 Top 10 holdings 31-Dec-13Intel Corp. INTC Semiconductors $123 (4)% 4 % $5.1 10 5 % 1 %AT&T Inc. T Integrated Telecommunication Services 175 (4) 3 5.0 3 4 1Verizon Communications VZ Integrated Telecommunication Services 133 (4) 4 4.9 2 5 1Exxon Mobil Corp. XOM Integrated Oil & Gas 411 (6) 1 4.7 6 4 0International Bus. Machines IBM IT Consulting & Other Services 199 (2) 3 4.7 4 4 1Caterpillar CAT Construction & Farm Machinery & Heavy Trucks 61 7 6 3.6 4 4 1EMC Corp. EMC Computer Storage & Peripherals 52 1 7 3.4 8 5 3salesforce.com, inc. CRM Application Software 38 14 9 2.9 10 5 3Walt Disney DIS Movies & Entertainment 139 4 2 2.5 4 4 1Johnson & Johnson JNJ Pharmaceuticals 262 1 1 2.2 9 4 1Netflix Inc. NFLX Internet Retail 26 18 9 2.1 9 7 16Wal-Mart Stores WMT Hypermarkets & Super Centers 245 (4) 2 1.9 3 12 1General Electric GE Industrial Conglomerates 260 (8) 1 1.8 13 4 1Coca-Cola Co. KO Soft Drinks 172 (6) 1 1.7 2 5 1Wells Fargo & Co. WFC Diversified Banks 243 2 1 1.7 11 6 1FedEx Corp. FDX Air Freight & Logistics 42 (7) 4 1.6 7 4 4General Dynamics GD Aerospace & Defense 37 12 5 1.5 0 NM 14Pfizer Inc. PFE Pharmaceuticals 207 5 1 1.5 8 4 1Procter & Gamble PG Household Products 216 (2) 1 1.5 6 7 1Target Corp. TGT General Merchandise Stores 35 (11) 4 1.5 2 6 2DIRECTV DTV Cable & Satellite 38 4 4 1.5 6 5 4Chevron Corp. CVX Integrated Oil & Gas 218 (8) 1 1.5 7 5 1Dow Chemical DOW Diversified Chemicals 57 5 3 1.5 3 4 2Deere & Co. DE Construction & Farm Machinery & Heavy Trucks 33 (6) 4 1.4 1 2 1Oracle Corp. ORCL Systems Software 173 (0) 1 1.4 10 6 1QUALCOMM Inc. QCOM Communications Equipment 129 3 1 1.4 13 5 3NextEra Energy NEE Electric Utilities 40 9 3 1.4 8 7 3UnitedHealth Group UNH Managed Health Care 74 (2) 2 1.4 4 4 1SanDisk Corp. SNDK Computer Storage & Peripherals 17 6 9 1.4 7 8 11ConocoPhillips COP Oil & Gas Exploration & Production 80 (6) 2 1.4 1 9 1CenturyLink CTL Integrated Telecommunication Services 18 (4) 8 1.3 2 4 1Cisco Systems CSCO Communications Equipment 121 1 1 1.3 5 4 1Merck & Co. MRK Pharmaceuticals 162 11 1 1.3 11 5 1McDonald's Corp. MCD Restaurants 95 (1) 1 1.3 2 4 2Exelon Corp. EXC Electric Utilities 25 10 5 1.2 4 6 2Eli Lilly and Co. LLY Pharmaceuticals 61 7 2 1.2 0 NM 2Mylan Inc. MYL Pharmaceuticals 18 6 7 1.2 7 6 7Fastenal Co. FAST Trading Companies & Distributors 13 (5) 10 1.2 1 8 1Schlumberger NV SLB Oil & Gas Equipment & Services 119 1 1 1.2 9 4 1Bristol-Myers Squibb BMY Pharmaceuticals 90 2 1 1.2 7 5 2Amgen Inc. AMGN Biotechnology 93 9 1 1.2 4 6 1Ford Motor Co. F Automobile Manufacturers 60 (0) 2 1.2 5 4 2Southern Co. SO Electric Utilities 37 5 3 1.2 0 NM 1Clorox Co. CLX Household Products 11 (4) 10 1.1 2 5 2Accenture ACN IT Consulting & Other Services 52 (0) 2 1.1 3 7 2Walgreen Co. WAG Drug Retail 61 13 2 1.1 9 5 6Boeing Co. BA Aerospace & Defense 98 (4) 1 1.1 7 5 1U.S. Bancorp USB Diversified Banks 74 1 1 1.1 5 6 1Cerner Corp. CERN Health Care Technology 21 8 6 1.1 0 NM 0Regeneron Pharmaceuticals REGN Biotechnology 32 18 5 1.1 0 NM 1Total $5,200 $93.3

Average $104 2 % 3 % $1.9 5 5 % 2 %Median 74 1 2 1.4 5 5 1



The impact of hedge funds: Look at the “concentrated” positions

We define “concentration” as the share of market capitalization owned in aggregate by hedge funds. The strategy of buying the 20 most concentrated stocks has a strong track record over more than 10 years. Since 2001, the strategy has outperformed the market 71% of the time by an average of 262 bp per quarter (not annualized).

Exhibit 14: Hedge fund concentration baskets versus the S&P 500 as of February 14, 2014


The high hedge fund concentration strategy works in an upward trending market but tends to perform poorly during choppy or flat markets. The stocks in the basket tend to be mid-caps (at the lower end of the S&P 500 capitalization distribution), which outperformed large-caps from 2004 to 2007, contributing to the attractive back-test results. The baskets are not sector neutral versus the S&P 500.

The “most concentrated” stocks performed exceptionally well in 2012 and 2013. After underperforming the S&P 500 by 400 bp in 2011 (-2% vs. +2%), our High Concentration basket outperformed by 800 bp in 2012 (+24% vs. +16%) and 1700 bp in 2013 (+51% vs. +34%).

Four stocks entered the “most concentrated” basket this quarter: ALLE, APD, QEP, and CVC.

Exhibit 15: “Most concentrated” outperformed SPX by 210 bp YTD; “Least concentrated” underperformed by 50 bp as of February 14, 2014


Hedge Fund Concentration

Quarterly Relative Return vs. SPX

"Most" "Least"<GSTHHFHI> <GSTHHFSL>

Maximum 1,225 bp75th Percentile 608 259 Median 341 (9) 25th Percentile (191) Minimum (600)

Standard Deviation 654 345

Avg Excess Return (bp) 262 bp 25 bpSharpe Ratio 0.40 0.07

Hit rate of outperformance 71 % 49 %since May 2001

2,413 bp

(1347) (90)

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MOST Concentrated<GSTHHFHI>

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S&P 500 Hedge Fund Baskets(relative returns vs. SPX)

Performance Average Stock TurnoverBloomberg 4Q % owned by Equity Cap Beta to 4Q Average

Name Ticker YTD 2013 Hedge Funds ($ bil) S&P 500 2013 since 2001High Concentration GSTHHFHI 1.8 % 10.2 % 21.5% $11 1.1 20 % 29 %Low Concentration GSTHHFSL (0.8) 7.6 0.5 84 1.0 45 51S&P 500 (0.3) 10.5 5.2 35 1.1



Goldman Sachs S&P 500 “concentrated” hedge fund baskets

Exhibit 16: The 20 most concentrated stocks in the S&P 500 <Bloomberg: GSTHHFHI> Holdings as of December 31, 2013; Pricing as of February 14, 2014

New stocks in basket listed in bold.


Exhibit 17: The 20 least concentrated stocks in the S&P 500 <Bloomberg: GSTHHFSL> Holdings as of December 31, 2013; Pricing as of February 14, 2014

New stocks in basket listed in bold.


S&P 500: Twenty MOST CONCENTRATED Hedge Fund Holdings (Bloomberg Ticker: GSTHHFHI)% of equity cap

Equity Total Return owned byCap During 2014 Hedge Funds

Company Ticker Sector Sub-sector ($ bil) 4Q YTD 31-Dec-13AutoNation AN Consumer Discretionary Automotive Retail 6 (5)% 4 % 30%Constellation Brands STZ Consumer Staples Distillers & Vintners 15 23 13 29Tenet Healthcare THC Health Care Health Care Facilities 5 2 11 27Family Dollar Stores FDO Consumer Discretionary General Merchandise Stores 7 (9) (2) 27Micron Technology MU Information Technology Semiconductors 26 25 15 24Crown Castle Intl CCI Telecommunication Services Wireless Telecommunication Services 25 1 2 23CBRE Group CBG Financials Real Estate Services 9 14 3 22Allegion ALLE Industrials Building Products 5 12 22Tesoro Corp. TSO Energy Oil & Gas Refining & Marketing 7 34 (14) 22Beam Inc. BEAM Consumer Staples Distillers & Vintners 14 6 23 21H&R Block Inc. HRB Consumer Discretionary Specialized Consumer Services 8 10 7 21VeriSign Inc. VRSN Information Technology Internet Software & Services 7 17 (9) 19WPX Energy WPX Energy Oil & Gas Exploration & Production 4 6 (14) 19E*TRADE Financial ETFC Financials Investment Banking & Brokerage 6 19 11 18Goodyear Tire & Rubber GT Consumer Discretionary Tires & Rubber 7 6 12 18Motorola Solutions MSI Information Technology Communications Equipment 17 14 (3) 18Air Products and Chemicals APD Materials Industrial Gases 25 6 5 18News Corp. NWSA Consumer Discretionary Publishing 10 12 (2) 17QEP Resources QEP Energy Oil & Gas Exploration & Production 6 11 4 17Cablevision Systems CVC Consumer Discretionary Cable & Satellite 4 8 (7) 17

GSTHHFHI Basket (average) 11 10 % 4 % 21%S&P 500 (average) 35 10 0 5

S&P 500: Twenty LEAST CONCENTRATED Hedge Fund Holdings (Bloomberg Ticker: GSTHHFSL)% of equity cap

Equity Total Return owned byCap During 2014 Hedge Funds

Company Ticker Sector Sub-sector ($ bil) 4Q YTD 31-Dec-13PACCAR Inc PCAR Industrials Construction & Farm Machinery & Heavy Trucks 22 8 % 4 % 0.4%Texas Instruments TXN Information Technology Semiconductors 48 10 1 0.4AMETEK Inc. AME Industrials Electrical Components & Equipment 13 15 (2) 0.4BlackRock Inc. BLK Financials Asset Management & Custody Banks 51 18 (4) 0.4Cerner Corp. CERN Health Care Health Care Technology 21 6 8 0.4Exxon Mobil Corp. XOM Energy Integrated Oil & Gas 411 18 (6) 0.5Amphenol Corp. APH Information Technology Electronic Components 14 16 (1) 0.5V.F. Corp. VFC Consumer Discretionary Apparel Accessories & Luxury Goods 25 26 (9) 0.5BorgWarner BWA Consumer Discretionary Auto Parts & Equipment 13 11 4 0.5Public Storage PSA Financials Specialized REITs 29 (5) 10 0.5AT&T Inc. T Telecommunication Services Integrated Telecommunication Services 175 5 (4) 0.5Torchmark Corp. TMK Financials Life & Health Insurance 7 9 (3) 0.6Waste Management WM Industrials Environmental & Facilities Services 20 10 (3) 0.6Southern Co. SO Utilities Electric Utilities 37 1 5 0.6Vornado Realty Trust VNO Financials Diversified REITs 18 6 9 0.6International Bus. Machines IBM Information Technology IT Consulting & Other Services 199 2 (2) 0.6Chevron Corp. CVX Energy Integrated Oil & Gas 218 4 (8) 0.6Wal-Mart Stores WMT Consumer Staples Hypermarkets & Super Centers 245 7 (4) 0.6Plum Creek Timber PCL Financials Specialized REITs 8 0 (7) 0.6United Technologies UTX Industrials Aerospace & Defense 104 6 1 0.6

GSTHHFSL Basket (average) 84 9 % (1)% 0.5%S&P 500 (average) 35 10 0 5.2



Exploring hedge fund net exposure

Short positions shed light on the “other side” of fund portfolios We combined $1.2 trillion of single-stock and ETF long holdings in 13-F filings of 778 hedge funds with our estimate of hedge fund short positions. We estimate hedge funds accounted for 85%, or $570 billion, of the $671 billion in single-stock, ETF and market index short interest positions filed with exchanges as of December 31, 2013. Our analysis suggests that hedge funds operate 54% net long (net/long), a new record high. We estimate roughly 15% of short positioning is conducted via ETFs with 9% occurring at the broad index level.

Short positions offer more comprehensive insight to hedge fund sector tilts. Our analysis of short interest data suggests that hedge fund sector net exposure may differ from what 13-F filings of long positions would indicate.

Allocation differences between long and short positions skew sector positioning relative to the Russell 3000 beyond what long holdings alone would suggest. Hedge fund long exposure shows funds are overweight Consumer Discretionary relative to the Russell 3000 (21% versus 14%). Short interest data indicates Consumer Discretionary accounts for 18% of all short positions. Combining long and short data, hedge funds appear to hold a 24% net weighting in Consumer Discretionary and are more overweight relative to the Russell 3000 than long exposure suggests. Similar portfolio skew occurs in the overweight of the Materials sector and underweight of the Information Technology sector, among others.

Hedge fund over- and underweight sector positioning went unchanged in 2H 2013. Hedge funds remain most overweight Consumer Discretionary and most underweight Information Technology, Consumer Staples, and Financials relative to the Russell 3000.

Exhibit 18: Estimated hedge fund long, short, and net exposure, by sector ($ in billions) Holdings as of December 31, 2013; Pricing as of February 14, 2014


Overweight / Underweight Consumer

Discretionary Energy MaterialsTelecom Services Industrials

HealthCare Utilities

Information Technology

Consumer Staples Financials TOTAL

LONGStock Positions $260 $145 $62 $29 $128 $140 $19 $197 $69 $163 $1,212ETF Positions 2 2 1 0 2 2 1 4 2 4 19

Hedge Fund LONG $262 $147 $63 $29 $130 $142 $20 $201 $70 $166 $1,232

SHORTStock Positions $91 $39 $19 $13 $51 $67 $13 $97 $30 $67 $486ETF Positions 10 13 4 1 7 9 4 14 7 17 85

Estimated SHORT $101 $51 $23 $14 $58 $76 $17 $111 $36 $83 $570

EXPOSUREGross $363 $199 $85 $44 $188 $217 $37 $312 $106 $250 $1,802Net 161 96 40 15 71 66 3 91 34 83 661

% Net Long (Net/Long) 61 % 65 % 64 % 52 % 55 % 47 % 15 % 45 % 48 % 50 % 54 %

Net Sector Weighting (%)

Hedge Fund Net Exposure 24 % 14 % 6 % 2 % 11 % 10 % 0 % 14 % 5 % 13 % 100 %Russell 3000 14 9 4 2 12 12 3 17 9 18 100

Over/(Under)weight 1,056 bp 563 bp 211 bp (2)bp (86)bp (228)bp (243)bp (338)bp (422)bp (511)bp



Exhibit 19: The biggest discrepancy between long and short portfolio positioning is in Consumer Discretionary Holdings as of December 31, 2013; Pricing as of February 14, 2014


We believe hedge funds account for the vast majority of short positions. The steady growth of shorts in the US equity market from 2002 to 2008 accompanied the rise in hedge fund assets (Exhibit 20). We estimate that hedge funds account for 85% of all short positions. Short interest remained at about 2.0% of market cap in 4Q 2013, where it has hovered since mid-2012. The short interest ratio (days to cover) rose to 3.0 days, the highest since mid-2007, as the market rallied but volumes remained low.

We acknowledge certain limitations to our hedge fund short position analysis. There is time delay, as short interest is filed bi-weekly with the exchanges and released with a 10-day delay. The short interest information we have represents positions reported by US broker/dealers. Broker/dealers incorporated outside the US do not have to report their positions. Swaps and other derivatives are also not captured in this analysis.

Exhibit 20: Short interest by dollars and share of cap as of January 31, 2014

Exhibit 21: Short interest ratio (days to cover) as of January 31, 2014

Source: Compustat, FactSet and Goldman Sachs Global Investment Research.

Source: Compustat, FactSet and Goldman Sachs Global Investment Research.

Aggregate Asset Allocation vs. Russell 3000 vs. Mutual FundsLong Short Net Multi-cap Core Net

Portfolio Portfolio Allocation Net Russell 3000 Sector Aggregate SectorSector ($1232 bil) ($570 bil) Difference Weighting Weighting Tilt Weighting TiltConsumer Discretionary 21.3 % 17.7 % 361 bp 24.4 % 13.9 % 1,056 bp 16.1 % 831 bpEnergy 12.0 9.0 293 14.5 8.9 563 7.9 663 Information Technology 16.4 19.4 (305) 13.7 17.1 (338) 14.6 (87) Financials 13.5 14.6 (108) 12.6 17.7 (511) 16.4 (386) Industrials 10.5 10.2 32 10.8 11.7 (86) 14.0 (317) Health Care 11.5 13.3 (174) 10.0 12.3 (228) 14.1 (408) Materials 5.1 4.0 110 6.0 3.9 211 5.8 28 Consumer Staples 5.7 6.3 (63) 5.2 9.4 (422) 7.5 (232) Telecom Services 2.4 2.5 (10) 2.3 2.3 (2) 1.2 107 Utilities 1.6 3.0 (136) 0.4 2.9 (243) 2.4 (200)

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Sectors: Funds keep steady allocations

Commodity sectors remain overweights; Health Care underweight During 4Q 2013, average hedge fund long sector allocations remained largely unchanged from 3Q 2013. While allocations to some sectors shifted by as much as 50 bp, the overall over- and underweight positioning and ranking of sectors remained constant.

Consumer Discretionary and Consumer Staples are consistently the largest over- and underweight sector positions relative to the Russell 3000, and those biases remained this quarter (see Exhibit 22). We recognize hedge funds do not manage assets based on a benchmark, but understanding and interpreting sector tilts requires an orientation to some index.

Hedge funds added exposure to Health Care but remained underweight. Hedge funds reduced exposure to the Energy, Financials, and Consumer Staples sectors.

Mutual funds also lowered exposure to the Energy sector. Mutual funds and hedge funds both raised allocations to Health Care and Industrials and lowered exposure to Utilities but made opposite adjustments to exposure in most other sectors.

Sub-sectors: What hedge funds are buying and selling We estimate the dollars invested by hedge funds in various sub-sectors based on change in ownership during the quarter. Sub-sectors in which hedge funds added to positions underperformed sub-sectors in which they sold during 4Q (10% vs. 12%).

Exhibit 22: Distribution of hedge fund long holdings by sector (equal-weighted average of 778 hedge funds) Holdings as of December 31, 2013; Pricing as of February 14, 2014

Note: Based on analysis of 778 hedge funds with $1.2 trillion of single-stock equity assets. Mutual fund holdings represent an aggregate multi-cap core portfolio.


Overweight / Underweight

Consumer Discretionary Materials Energy

Information Technology

Telecom Services Industrials Health Care Financials Utilities

Consumer Staples

Hedge Fund Weight (%) 19.2 5.8 10.5 17.9 2.2 10.9 11.5 16.7 1.6 3.7

Over/(Underweight) (bp) 536 186 159 81 (12) (79) (81) (95) (131) (564)Change vs. last quarter (bp) 16 18 (49) (6) 18 35 58 (29) (9) (53)

Mutual Fund Weight (%) 16.1 5.8 7.9 14.6 1.2 14.0 14.1 16.4 2.4 7.5

Over/(Underweight) (bp) 225 183 (100) (252) (109) 230 180 (125) (43) (190)Change vs. last quarter (bp) (5) (2) (54) 56 (6) 17 10 0 (16) 0

Russell 3000 Weight (%) 13.9 3.9 8.9 17.1 2.3 11.7 12.3 17.7 2.9 9.4

Russell 3000 - 4Q 2013 Return 10.5 10.4 7.8 12.2 6.8 13.1 9.8 9.5 3.2 8.6Russell 3000 - YTD Return (2.4) 0.3 (2.9) 1.4 (3.5) (1.7) 5.7 (0.7) 5.6 (2.7)



Exhibit 23: Largest changes in hedge fund ownership concentration of Russell 3000 sub-sectors during 4Q 2013 as of December 31, 2013


Top 20 Sub-sectors Hedge Funds BUYING% of Equity Cap

owned by Sub-sectorHedge Funds Change MktCap 4Q

30-Sep-13 31-Dec-13 (bps) ($ mil) ($ mil) PerformanceEducation Services 9% 14% 430 bp $938 $23,897 9 %Mortgage REITs 8 13 406 2,301 55,592 3Wireless Telecommunication Services 11 13 188 1,862 110,629 2Home Entertainment Software 7 9 177 511 25,583 (0)Trucking 11 13 159 852 58,041 15Automobile Manufacturers 5 7 158 2,280 144,313 (2)Building Products 9 10 149 743 54,834 14Construction Materials 10 11 148 279 19,572 7Semiconductor Equipment 6 7 142 878 64,087 13Metal & Glass Containers 8 9 135 426 33,306 8Leisure Facilities 18 20 133 192 14,745 10Home Furnishings 10 11 133 269 21,473 13Advertising 10 11 133 479 38,315 9Human Resource & Employment Services 4 6 131 396 32,313 17Airlines 11 12 129 887 77,828 17Diversified Real Estate Activities 6 7 127 55 4,523 7Diversified Support Services 9 11 121 368 32,052 12Independent Power Producers & Energy Traders 10 11 110 362 33,943 6Oil & Gas Refining & Marketing 10 11 104 1,235 135,932 34Paper Packaging 4 5 103 431 43,546 11

Top 20 (median) 10 %Russell 3000 (median) 8

Bottom 20 Sub-sectors Hedge Funds SELLING% of Equity Cap

owned by Sub-sectorHedge Funds Change MktCap 4Q

30-Sep-13 31-Dec-13 (bps) ($ mil) ($ mil) PerformanceTires & Rubber 23% 19% (442)bp ($330) $7,437 (8)%Commodity Chemicals 11 7 (367) (2,268) 65,288 14Security & Alarm Services 13 10 (295) (279) 9,066 10Forest Products 12 9 (251) (113) 4,634 5Department Stores 10 8 (187) (999) 56,351 10Coal & Consumable Fuels 7 5 (147) (270) 19,385 14Hotels Resorts & Cruise Lines 8 7 (119) (1,163) 106,404 17Food Retail 9 8 (106) (738) 68,709 (2)Specialized Finance 9 9 (98) (1,007) 113,326 12Aluminum 5 4 (90) (112) 13,811 31Brewers 3 2 (82) (108) 13,734 13Apparel Accessories & Luxury Goods 9 8 (80) (1,007) 132,907 13Research & Consulting Services 5 5 (71) (440) 64,905 7Internet Retail 8 7 (69) (1,950) 313,545 10Textiles 8 7 (68) (5) 769 13Real Estate Services 26 25 (63) (131) 22,329 16Leisure Products 3 3 (63) (255) 43,208 15Motorcycle Manufacturers 3 2 (57) (85) 15,310 8Specialty Stores 10 10 (56) (481) 89,856 13Movies & Entertainment 6 5 (55) (1,797) 336,092 6

Bottom 20 (median) 12 %Russell 3000 (median) 8



Size: Large-cap stocks account for almost 50% of typical fund

Small-cap stocks compose 33% of the average fund’s portfolio The typical hedge fund allocates 33% of its assets to small-cap stocks (Russell 2000) and 46% to large-cap stocks (largest 500 in the Russell 1000). Mid-cap stocks (bottom half of the Russell 1000) account for 20% of the average fund’s portfolio (Exhibit 25).

On an aggregate asset basis, hedge funds allocate just 17% of their assets to small-cap stocks, while 63% is allocated to large caps. The difference between the average and the aggregate suggests that the hedge funds with the largest assets under management target large-cap stocks.

For comparison, mutual funds invest an average of 11% of their portfolios in small-cap stocks and 62% in large-cap stocks. Similarly, on an aggregate asset basis 9% of assets are invested in small-cap stocks and 63% is in large-cap stocks.

Exhibit 24: Small-caps have generally performed in line with large-caps since 2006

Source: Compustat and Goldman Sachs Global Investment Research.

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8 years trading sideways

S&P 500vs

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Exhibit 25: Hedge fund asset allocation by equity capitalization

Note: Mutual fund holdings represent an aggregate multi-cap core portfolio.


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Equal Weighted AverageLess than$2 Billion

$2 Billion to $10 Billion

$10 Billion and Greater

Hedge Funds 31 % 31 % 39 %Mutual Funds 11 27 62Russell 3000 57 29 14

Aggregate AssetsHedge Funds 13 % 33 % 55 %Mutual Funds 9 28 63Russell 3000 5 16 78

Median PerformanceRussell 3000 - 2013 44 % 45 % 42 %Russell 3000 - 4Q 2013 9 10 11Russell 3000 - YTD (2) 0 1



Hedge fund portfolio density and position turnover

Hedge fund returns are highly dependent on the performance of a few key stocks. The typical hedge fund has an average of 63% of its long-equity assets invested in its 10 largest positions compared with 31% for the typical large-cap mutual fund, 22% for the average small-cap mutual fund, 18% for the S&P 500 and just 3% for the Russell 2000 Index.

Exhibit 26: Top 10 holdings account for 63% of assets in hedge fund portfolios

Source: Compustat and Goldman Sachs Global Investment Research.

Turnover of holdings continues to fall, reaching a new historic low of 28% in 4Q. Quarterly turnover fell in most sectors, with increases only in the Consumer Discretionary and Info Tech sectors.

Exhibit 27: Hedge fund position turnover averaged 28% in 4Q 2013, a new all-time low, as of December 31, 2013

Source: Compustat, Lionshares via FactSet and Goldman Sachs Global Investment Research.

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Hedge Fund Turnover by Sector2013 Change since 2-yr

Sector 4Q 3Q 2013 AvgConsumer Discretionary 30 % 1 pp 32 %Information Technology 33 1 33Industrials 29 0 32Telecom Services 29 (0) 33Financials 27 (1) 30Energy 29 (2) 33Health Care 29 (3) 32Utilities 30 (3) 37Materials 28 (4) 33Consumer Staples 28 (6) 34

S&P 500 28 % (1)pp 31 %



Hedge funds and ETFs: Hedging tools, not investment vehicles

Hedge funds use ETFs more as a hedging tool than as a directional investment vehicle, based on our analysis of 13-F and short interest filings. We estimate that hedge funds hold $143 billion in gross exposure to ETFs compared with $1.7 trillion of gross exposure to single-stocks. ETFs represent 3% of long holdings, down from nearly 6% in 1Q 2009 and the lowest level since 1Q 2010 (Exhibit 28).

The $109 billion of short ETF positions accounts for 76% of the hedge fund gross ETF exposure. In contrast, single-stock short positions ($486 billion) represent 29% of hedge fund gross single-stock positions. The most shorted ETFs tend to be index hedges. Commodity-related, bond funds, and Emerging Market ETFs appear to make up the majority of ETFs that hedge funds utilize (see Exhibit 29). Specific notable short positions include the Energy and Utilities sectors, real estate, and 20+ year Treasuries.

Exhibit 28: ETF long assets total $35 billion, or just 3% of total long exposure, as of December 31, 2013

Source: Compustat, Lionshares via FactSet, IDC and Goldman Sachs Global Investment Research.

Exhibit 29: Hedge fund ETF ownership Holdings as of December 31, 2013; Pricing as of February 14, 2014

Source: Compustat, Lionshares via FactSet, IDC and Goldman Sachs Global Investment Research.

Hedge Fund ETF Positioning ($ billions)

Sector / Description Long Short Gross NetTelecom Services $0.0 $0.0 $0.0 ($0.0)Consumer Staples 0.1 1.4 1.5 (1.4)Materials 0.5 1.7 2.2 (1.3)Industrials 0.1 1.7 1.8 (1.7)Utilities 0.1 2.6 2.7 (2.5)Health Care 0.1 2.4 2.5 (2.3)Consumer Discretionary 0.3 3.0 3.4 (2.7)Information Technology 1.1 4.3 5.4 (3.2)Financials 1.1 8.1 9.2 (7.0)Energy 0.4 7.2 7.6 (6.8)

Total Sector ETFs $3.7 $32.6 $36.3 ($28.9)Index 15.5 52.2 67.8 (36.7)Other 15.4 24.0 39.4 (8.6)

Total ETF Ownership $34.6 $108.8 $143.4 ($74.1)

0%

1%

2%

3%

4%

5%

6%

7%

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Mar

-13

Mar

-14

Mar

-15

5.8%

2.8%

Hedge Fund ETF holdings(as % of long portfolio)

Current ETF Ownership Change from Sep-2013Change Change Change

Return # of HF Long Short Net in # of HF in Long in ShortETF Name Ticker Sector/Type 4Q YTD Investors ($ mil) ($ mil) ($ mil) Investors Holdings InterestVanguard FTSE Emerging Markets ETF VWO EM 3 % (5)% 23 $4,454 $948 $3,506 (2) $(324) $413iShares MSCI Emerging Markets ETF EEM EM 3 (5) 44 3,601 2,875 726 (6) (57) (175)SPDR Gold Trust ETF GLD Commodities (9) 9 60 1,803 1,835 (33) 6 (162) (988)SPDR S&P Regional Banking ETF KRE Financials 14 (4) 18 419 893 (474) 10 131 (246)iShares MSCI EAFE ETF EFA DM 6 (1) 27 629 1,228 (599) (2) 97 (1,348)iShares Core S&P 500 ETF IVV Index 10 (0) 10 58 908 (850) 2 21 511iShares iBoxx USD High Yield Corporate Bond ETF HYG Bonds 3 2 21 683 1,654 (971) (4) 300 171Barclays Bank PLC iPath S&P 500 VIX Short-Term Futures ETN VXX VIX (28) (1) 17 78 1,075 (998) (4) (50) 258iShares MSCI Brazil Capped ETF EWZ EM (6) (9) 23 311 1,462 (1,151) (2) (417) (159)iShares China Large-Cap ETF FXI EM 4 (7) 29 318 1,492 (1,175) (3) (212) 149Consumer Staples Select Sector SPDR Fund XLP Consumer Staples 9 (3) 13 70 1,422 (1,352) 0 (3) 57Health Care Select Sector SPDR Fund XLV Health Care 10 5 12 69 1,494 (1,425) (9) (13) 61Industrial Select Sector SPDR Fund XLI Industrials 13 (2) 23 67 1,499 (1,432) 3 (104) (50)SPDR Dow Jones Industrial Average ETF Trust ETF Trust Units DIA Index 10 (2) 6 91 1,531 (1,441) (3) (152) 47Financial Select Sector SPDR Fund XLF Financials 10 (1) 32 364 1,943 (1,580) 4 50 134SPDR S&P MidCap 400 ETF Trust Series 1 ETF Trust Units MDY Index 8 0 11 75 1,693 (1,618) (1) 15 (242)SPDR S&P Retail ETF XRT Consumer Discretionary 8 (8) 12 26 1,876 (1,850) 3 (1) (691)SPDR S&P Oil & Gas Exploration & Production ETF XOP Energy 4 (0) 11 45 2,072 (2,027) 3 24 (119)Utilities Select Sector SPDR Fund XLU Utilities 3 6 14 58 2,588 (2,530) (6) 3 844PowerShares QQQ Trust QQQ Info Tech 12 2 27 1,058 3,625 (2,567) 2 327 23iShares 20+ Year Treasury Bond ETF TLT Bonds (3) 5 11 81 2,932 (2,852) (6) 6 352Energy Select Sector SPDR Fund XLE Energy 7 (3) 24 231 3,811 (3,581) (4) 90 318iShares US Real Estate ETF IYR Financials (0) 7 19 79 4,580 (4,501) (8) (28) 754iShares Russell 2000 ETF IWM Index 9 (1) 49 834 10,897 (10,062) 7 (1,190) (4,379)SPDR S&P 500 ETF SPY Index 11 (0) 94 13,216 32,829 (19,613) (5) 3,248 (8,025)

Top 25 28,715 89,165 (60,450) 1,599 (12,329) Others 5,918 19,610 (13,692) (985) 17,399Total ETF Ownership $34,634 $108,775 ($74,142) $614 $5,070



Appendix A: Drawbacks of our hedge fund holding analysis

Data limitations One weakness of our analysis is that it excludes any synthetic positions that hedge funds may create through the use of derivative contracts (options, swaps, futures). Such financial instruments are not required to be disclosed in public filings.

We track both natural and leveraged long positions based on filings of hedge fund holdings. However, a hedge fund could offset a long position that we are able to monitor with a synthetic short position in options or futures on the underlying stock or an index of similar stocks that we currently are not able to monitor because the data on such trades and positions is not disclosed. These positions could either magnify or reduce the conclusions of our Hedge Fund Trend Monitor.

Lack of international holdings Hedge funds are not required to include foreign holdings in their 13-F filings. Consequently, our analysis may not capture all the long equity positions of hedge funds. While we do not believe this lack of data significantly affects our analysis of holdings by sector and capitalization size, we may overestimate the “density” of hedge fund portfolios.

Incomplete reporting of short positions Our data is limited to publicly disclosed short interest statistics released by the exchanges. Only US broker-dealers are required to report short positions to these exchanges, so we miss any shorts held in overseas accounts. We assume that hedge funds account for 85% of all short interest in the market and that the short side of hedge fund portfolios mirrors the overall short market in terms of sector allocation.

Timeliness Another potential weakness of our analysis relates to the timeliness of the reported data. For example, the equity holdings for the 778 hedge funds we studied were based on 13-F filings of positions owned as of December 31, 2013, although most of these filings were not made public until mid-February 2014.

Importantly, we believe our analysis of December 31, 2013 hedge fund holdings based on filings made in mid-February 2014 is probably more reflective of actual current holdings than many market participants are inclined to believe.

Hedge fund holdings turnover is lower than most expect. Most securities (72%) that were in hedge fund portfolios on September 30, 2013, also appeared in portfolios on December 31, 2013. Because the overall holdings picture was surprisingly constant, we think it is reasonable for us to believe that the most recent holdings data is not so “out-of-date” as some might suggest.



Appendix B: Hedge fund data tables

Popularity: Largest number of hedge fund investors

Most popular: 50 stocks with largest number of hedge fund investors 24

Change in popularity during 4Q 2013 25

Concentration: Highest percent of market cap held by hedge funds

Highest concentration: Stocks under $1 billion market cap 26

Highest concentration: Stocks over $1 billion market cap 27

Largest increase in concentration 28

Largest decrease in concentration 29

Highest concentration by equity capitalization band 30

Highest concentration by sector 32

Short interest: Highest percent shares outstanding held short

Highest short interest: Stocks under $1 billion 34

Highest short interest: Stocks over $1 billion 35



Popularity: Largest number of hedge fund investors

Exhibit 30:

Note: Based on analysis of 778 hedge funds with $1.2 trillion of single-stock equity assets. Holdings as of December 31, 2013; Pricing as of February 14, 2014.


POPULARITY: 50 stocks with the largest NUMBER of hedge fund investors

POPULARITY CONCENTRATION

Number of Percent of Short Avg DaysEquity Hedge Funds Equity Cap owned Total Interest Volume to

Cap Owning Stock by Hedge Funds Return as % of LiquidateCompany Ticker Sub-sector ($ mil) 31-Dec-13 30-Sep-13 31-Dec-13 Chg YTD Mkt Cap HF PositionGeneral Motors Company GM Automobile Manufacturers $57,153 196 11 % 14 % 3 % (12)% 6 % 12Apple Inc. AAPL Computer Hardware 485,233 183 2 3 1 (2) 2 2Google Inc. Class A GOOG Internet Software & Services 336,643 167 3 3 0 7 2 4American International Group, Inc. AIG Multi-line Insurance 71,710 164 11 11 (0) (4) 1 13Citigroup Inc. C Other Diversified Financial Services 149,996 155 3 4 1 (5) 1 4Microsoft Corporation MSFT Systems Software 312,273 136 2 2 0 1 1 4Hertz Global Holdings, Inc. HTZ Trucking 11,539 136 31 31 (0) (10) 2 16Time Warner Cable Inc. TWC Cable & Satellite 40,416 132 11 17 5 8 2 17JPMorgan Chase & Co. JPM Other Diversified Financial Services 218,597 128 2 2 0 0 1 3Facebook, Inc. Class A FB Internet Software & Services 132,551 128 7 7 0 23 2 2Bank of America Corporation BAC Other Diversified Financial Services 176,883 124 2 2 0 7 1 2American Airlines Group, Inc. AAL Airlines 26,016 120 0 11 11 36 10 6QUALCOMM Incorporated QCOM Communications Equipment 128,996 110 4 3 (1) 3 1 5Delta Air Lines, Inc. DAL Airlines 26,813 109 14 12 (2) 14 2 8Anadarko Petroleum Corporation APC Oil & Gas Exploration & Production 41,036 107 7 9 2 3 1 13LyondellBasell Industries NV LYB Commodity Chemicals 46,710 105 13 8 (5) 5 1 11Micron Technology, Inc. MU Semiconductors 26,607 102 24 24 1 15 11 7priceline.com Incorporated PCLN Internet Retail 65,827 101 13 11 (2) 10 3 9Halliburton Company HAL Oil & Gas Equipment & Services 45,581 100 3 5 2 6 2 4eBay Inc. EBAY Internet Software & Services 70,908 99 4 4 0 (0) 2 5Visa Inc. Class A V Data Processing & Outsourced Services 113,973 99 4 4 (0) 2 2 6Amazon.com, Inc. AMZN Internet Retail 164,118 96 3 3 0 (10) 1 5Pfizer Inc. PFE Pharmaceuticals 207,005 96 1 1 0 5 1 2Johnson & Johnson JNJ Pharmaceuticals 261,717 96 1 1 (0) 1 1 3CBS Corporation Class B CBS Broadcasting 36,432 95 15 17 1 2 3 18Community Health Systems, Inc. CYH Health Care Facilities 4,669 92 36 35 (1) 5 9 26Twenty-First Century Fox, Inc. Class A FOXA Movies & Entertainment 47,524 92 12 11 (2) (7) 3 12Vodafone Group Plc Sponsored ADR VOD Wireless Telecommunication Services 178,406 91 2 3 1 (6) 0 12Comcast Corporation Class A CMCSA Cable & Satellite 114,881 91 3 3 (0) 3 1 5Fidelity National Financial, Inc. Class A FNF Property & Casualty Insurance 8,949 89 24 30 6 0 9 30Dollar General Corporation DG General Merchandise Stores 18,338 89 30 31 1 (5) 2 28Yahoo! Inc. YHOO Internet Software & Services 38,782 88 10 9 (1) (5) 3 5HCA Holdings, Inc. HCA Health Care Facilities 22,284 87 17 20 3 4 1 25Schlumberger NV SLB Oil & Gas Equipment & Services 118,167 87 2 1 (0) 1 1 3Charter Communications, Inc. Class A CHTR Cable & Satellite 13,470 86 37 38 1 (5) 7 37EOG Resources, Inc. EOG Oil & Gas Exploration & Production 48,306 86 4 5 1 6 1 7MasterCard Incorporated Class A MA Data Processing & Outsourced Services 88,324 86 5 4 (0) (7) 1 8PepsiCo, Inc. PEP Soft Drinks 119,400 84 2 2 0 (6) 1 6Gilead Sciences, Inc. GILD Biotechnology 124,610 84 2 2 (0) 8 5 3Freeport-McMoRan Copper & Gold Inc. FCX Diversified Metals & Mining 35,038 84 5 5 (1) (10) 2 3United Continental Holdings, Inc. UAL Airlines 16,103 83 12 13 1 18 6 10Merck & Co., Inc. MRK Pharmaceuticals 161,992 82 1 1 0 11 1 2General Electric Company GE Industrial Conglomerates 260,421 82 1 1 (0) (8) 1 2Hess Corporation HES Integrated Oil & Gas 26,837 82 18 16 (2) (4) 2 19Intel Corporation INTC Semiconductors 123,082 81 1 1 (0) (4) 4 1Crown Castle International Corp. CCI Wireless Telecommunication Services 25,062 80 18 23 5 2 2 30EMC Corporation EMC Computer Storage & Peripherals 51,308 80 2 3 1 1 6 3Procter & Gamble Company PG Household Products 215,286 80 1 1 0 (2) 1 3Wells Fargo & Company WFC Diversified Banks 242,515 80 1 1 0 2 1 3MetLife, Inc. MET Life & Health Insurance 56,538 80 5 4 (1) (6) 2 7

Average $108,301 104 9 % 9 % 1 % 2 % 3 % 9Median 68,368 94 4 4 0 1 2 6



Change in popularity during 4Q 2013

Exhibit 31:

Note: Based on analysis of 778 hedge funds with $1.2 trillion of single-stock equity assets. Holdings as of December 31, 2013; Pricing as of February 14, 2014.


20 stocks with largest POSITIVE changes in POPULARITY


Number of Percent of Total Short Avg DaysEquity Hedge Funds Equity Cap owned Return Interest Volume to

Cap Owning Stock by Hedge Funds since as % of LiquidateCompany Ticker Sub-sector ($ mil) 31-Dec-13 Chg 31-Dec-13 Chg 30-Sep-13 Mkt Cap HF PositionTime Warner Cable Inc. TWC Cable & Satellite $39,121 132 39 17 % 5 % 31 % 2 % 17General Motors Company GM Automobile Manufacturers 57,280 196 34 14 3 (0) 6 13Hertz Global Holdings, Inc. HTZ Trucking 11,588 136 34 31 (0) 16 2 16NorthStar Realty Finance Corp. NRF Mortgage REITs 4,668 74 34 48 22 61 18 31Crown Castle International Corp. CCI Wireless Telecommunication Services 24,892 80 29 23 5 3 2 30Delta Air Lines, Inc. DAL Airlines 26,154 109 28 12 (2) 33 2 7Cole Real Estate Investments, Inc. COLE Retail REITs 7,140 61 27 27 13 24 1 15Jos. A. Bank Clothiers, Inc. JOSB Apparel Retail 1,512 41 27 31 23 26 10 15Endo Health Solutions Inc. ENDP Pharmaceuticals 8,695 66 24 38 11 58 17 21Men's Wearhouse, Inc. MW Apparel Retail 2,081 49 24 41 35 30 5 22T-Mobile US, Inc. TMUS Wireless Telecommunication Services 25,028 73 23 13 4 20 1 20Citigroup Inc. C Other Diversified Financial Services 145,968 155 22 4 1 2 1 4Halliburton Company HAL Oil & Gas Equipment & Services 46,398 100 22 5 2 12 2 4eBay Inc. EBAY Internet Software & Services 70,869 99 21 4 0 (2) 2 5Baidu, Inc. Sponsored ADR Class A BIDU Internet Software & Services 47,425 79 21 9 1 8 1 7Bristol-Myers Squibb Company BMY Pharmaceuticals 88,221 69 21 2 1 19 2 4Cimarex Energy Co. XEC Oil & Gas Exploration & Production 9,713 47 21 10 4 14 2 10Micron Technology, Inc. MU Semiconductors 26,968 102 20 24 1 44 11 7Lorillard, Inc. LO Tobacco 17,327 42 20 1 0 8 5 1Lincoln Electric Holdings, Inc. LECO Industrial Machinery 5,953 36 20 2 0 10 1 6

Average $33,350 87 26 18 % 6 % 21 % 5 % 13Median 24,960 77 24 13 2 18 2 11

20 stocks with largest NEGATIVE changes in POPULARITY



Cap Owning Stock by Hedge Funds since as % of LiquidateCompany Ticker Sub-sector ($ mil) 31-Dec-13 Chg 31-Dec-13 Chg 30-Sep-13 Mkt Cap HF PositionPerrigo Co. Plc PRGO Pharmaceuticals $20,693 35 (51) 6 % (15)% 21 % 5 % 9J. C. Penney Company, Inc. JCP Department Stores 1,828 57 (23) 12 (17) (30) 28 1Mid-America Apartment Communities, Inc. MAA Residential REITs 5,091 15 (23) 3 (15) 11 2 4Exxon Mobil Corporation XOM Integrated Oil & Gas 407,273 70 (20) 0 (0) 11 1 2Noble Corporation PLC NE Oil & Gas Drilling 7,906 49 (18) 16 1 (16) 3 12News Corporation Class A NWSA Publishing 6,673 63 (17) 17 (3) 10 4 10IntercontinentalExchange Group, Inc. ICE Specialized Finance 24,346 59 (16) 9 (11) 19 1 14Vantiv, Inc. Class A VNTV Data Processing & Outsourced Services 4,304 14 (16) 3 (2) 10 6 3Marriott International, Inc. Class A MAR Hotels Resorts & Cruise Lines 15,438 35 (14) 2 (3) 23 3 3Tower Group International Ltd. TWGP Property & Casualty Insurance 159 21 (14) 25 1 (61) 18 9Ciena Corporation CIEN Communications Equipment 2,697 17 (14) 3 (5) (0) 17 1Edwards Lifesciences Corporation EW Health Care Equipment 7,332 31 (13) 4 (1) (3) 6 4Estee Lauder Companies Inc. Class A EL Personal Products 16,074 29 (13) 5 (1) (2) 2 7Analog Devices, Inc. ADI Semiconductors 16,117 20 (13) 3 (1) 9 2 5Portland General Electric Company POR Electric Utilities 2,457 19 (13) 9 (5) 13 15 10Rovi Corporation ROVI Systems Software 2,366 18 (13) 12 (5) 19 3 12Linear Technology Corporation LLTC Semiconductors 10,862 15 (13) 5 (0) 17 4 6Webster Financial Corporation WBS Regional Banks 2,651 12 (13) 4 (3) 20 3 6Sagent Pharmaceuticals, Inc. SGNT Pharmaceuticals 703 11 (13) 4 (7) (1) 3 8Express Scripts Holding Company ESRX Health Care Services 61,547 74 (12) 4 (2) 24 2 7

Average $30,826 33 (17) 7 % (5)% 5 % 6 % 7Median 7,003 25 (14) 5 (3) 10 3 6



Highest concentration: Stocks under $1 billion market cap

Exhibit 32:

Note: Based on analysis of 778 hedge funds with $1.2 trillion of single-stock equity assets. Table is limited to stocks with 10 or more hedge fund investors. Holdings as of December 31, 2013; Pricing as of February 14, 2014.


50 stocks UNDER $1 billion with largest hedge fund CONCENTRATION as % of market cap



Cap Owning Stock by Hedge Funds Return as % of LiquidateCompany Ticker Sub-sector ($ mil) 31-Dec-13 30-Sep-13 31-Dec-13 Chg YTD Mkt Cap HF PositionCooper-Standard Holdings Inc. CPS Auto Parts & Equipment $646 11 NM 61 % NM 16 % 1 % 354William Lyon Homes Class A WLH Homebuilding 612 17 62 59 (3) 31 2 63QLT Inc. QLTI Biotechnology 285 23 52 57 5 17 1 239American Railcar Industries, Inc. ARII Construction & Farm Machinery & Heavy Trucks 977 12 56 57 0 9 11 39FairPoint Communications, Inc. FRP Integrated Telecommunication Services 299 19 51 54 3 18 11 117Noranda Aluminum Holding Corporation NOR Aluminum 224 13 52 53 1 7 2 70Cherry Hill Mortgage Investment Corp. CHMI Mortgage REITs 134 15 NM 51 NM 4 1 25WCI Communities, Inc. WCIC Homebuilding 492 16 50 49 (1) (3) 1 113Idenix Pharmaceuticals, Inc. IDIX Biotechnology 801 15 40 48 8 15 14 49Repros Therapeutics Inc. RPRX Pharmaceuticals 421 18 51 48 (3) 1 15 18Genomic Health, Inc. GHDX Biotechnology 900 15 46 47 1 (6) 6 80Einstein Noah Restaurant Group, Inc. BAGL Restaurants 255 13 59 46 (13) 10 0 105Arrowhead Research Corporation ARWR Biotechnology 420 21 35 44 10 75 11 22Xyratex Ltd XRTX Computer Storage & Peripherals 368 22 37 44 7 (0) 0 63Addus HomeCare Corporation ADUS Health Care Services 245 11 45 44 (2) 16 4 28Vocus, Inc. VOCS Internet Software & Services 241 12 33 43 11 12 9 23JGWPT Holdings, Inc. Class A JGW Consumer Finance 195 15 NM 43 NM (11) 2 21First Security Group, Inc. FSGI Regional Banks 153 12 46 43 (3) (20) 1 171Unwired Planet, Inc. UPIP Internet Software & Services 151 16 32 43 11 8 1 132NMI Holdings, Inc. Class A NMIH Thrifts & Mortgage Finance 739 22 NM 43 NM (4) 1 145Syneron Medical Ltd ELOS Health Care Equipment 438 16 40 40 1 (7) 0 142Vitesse Semiconductor Corporation VTSS Semiconductors 169 10 39 39 (0) 22 0 80Net 1 UEPS Technologies, Inc. UEPS Application Software 399 18 39 38 (1) 10 0 99Beazer Homes USA, Inc. BZH Homebuilding 619 28 32 38 6 (13) 33 11Sears Hometown & Outlet Stores, Inc. SHOS Home Improvement Retail 584 14 43 38 (6) (9) 2 67Aeropostale, Inc. ARO Apparel Retail 714 29 28 37 9 (32) 31 15Rigel Pharmaceuticals, Inc. RIGL Biotechnology 249 21 32 37 6 11 3 33U.S. Concrete, Inc. USCR Construction Materials 318 15 13 37 23 (0) 1 88Vanda Pharmaceuticals Inc. VNDA Biotechnology 412 16 44 37 (8) 8 13 1158.com Inc. Sponsored ADR Class A WUBA Internet Software & Services 519 17 NM 36 NM (6) 4 5Lumos Networks Corp. LMOS Alternative Carriers 462 13 44 36 (8) (14) 2 74Central Pacific Financial Corp. CPF Regional Banks 845 12 39 36 (3) (7) 0 165BioScrip, Inc. BIOS Health Care Services 504 29 23 35 12 11 11 20AMAG Pharmaceuticals, Inc. AMAG Biotechnology 528 19 31 35 4 (16) 3 56Depomed, Inc. DEPO Pharmaceuticals 603 20 32 35 3 16 6 34Imperial Holdings, Inc. IFT Consumer Finance 139 10 27 35 8 (10) 1 143XOMA Corporation XOMA Biotechnology 688 21 42 34 (8) 9 6 26Morgans Hotel Group Co. MHGC Hotels Resorts & Cruise Lines 273 20 31 34 2 (2) 5 48Dex Media, Inc. DXM Publishing 119 10 33 34 0 (3) 30 18Anacor Pharmaceuticals, Inc. ANAC Biotechnology 684 18 26 34 7 15 8 26Move, Inc. MOVE Internet Software & Services 624 30 28 34 5 (18) 6 40Discovery Laboratories, Inc. DSCO Biotechnology 182 12 16 33 18 0 4 46Harvest Natural Resources, Inc. HNR Oil & Gas Exploration & Production 190 23 38 33 (5) 0 14 22Nordion Inc. NDZ Life Sciences Tools & Services 526 21 36 33 (3) 14 1 75Hawaiian Telcom Holdco, Inc. HCOM Integrated Telecommunication Services 304 16 32 33 1 (7) 7 132Immersion Corporation IMMR Computer Storage & Peripherals 297 20 32 33 1 8 1 30PennyMac Financial Services, Inc. Class A PFSI Thrifts & Mortgage Finance 365 10 35 32 (3) (5) 2 48American Residential Properties, Inc. ARPI Residential REITs 552 18 26 32 6 8 7 33BioCryst Pharmaceuticals, Inc. BCRX Biotechnology 449 11 38 32 (6) 28 13 10Forest Oil Corporation FST Oil & Gas Exploration & Production 432 32 32 31 (0) (14) 18 11

Average $435 17 38 % 41 % 2 % 4 % 7 % 70Median 421 16 37 37 1 2 4 48



Highest concentration: Stocks over $1 billion market cap

Exhibit 33:



50 stocks OVER $1 billion with largest hedge fund CONCENTRATION as % of market cap



Cap Owning Stock by Hedge Funds Return as % of LiquidateCompany Ticker Sub-sector ($ mil) 31-Dec-13 30-Sep-13 31-Dec-13 Chg YTD Mkt Cap HF PositionIcahn Enterprises L.P. IEP Auto Parts & Equipment $12,681 10 91 % 90 % (1)% 3 % 0 % 438CVR Energy, Inc. CVI Oil & Gas Refining & Marketing 3,771 20 85 83 (1) (13) 2 152Federal-Mogul Corporation FDML Auto Parts & Equipment 2,953 17 81 82 0 (14) 0 443Spectrum Brands Holdings, Inc. SPB Household Products 3,717 32 73 73 1 11 2 171Athlon Energy, Inc. ATHL Oil & Gas Exploration & Production 2,484 18 71 70 (1) 11 2 103Loral Space & Communications Inc. LORL Cable & Satellite 1,734 34 68 65 (2) (5) 1 249Harbinger Group Inc. HRG Household Products 1,721 26 66 65 (0) (4) 4 387Houghton Mifflin Harcourt Company HMHC Education Services 2,374 14 NM 59 NM 14 1 202Rexnord Corporation RXN Industrial Machinery 2,641 10 59 57 (2) 5 1 209Leap Wireless International, Inc. LEAP Wireless Telecommunication Services 1,381 33 55 57 2 1 6 36Liberty Interactive Corporation Ventures Series A LVNTA Internet Retail 4,334 58 51 51 0 8 0 92Lamar Advertising Company Class A LAMR Advertising 4,182 64 53 51 (2) (3) 7 40NorthStar Realty Finance Corp. NRF Mortgage REITs 3,998 74 26 48 22 8 18 26Macquarie Infrastructure Company LLC MIC Airport Services 3,029 45 46 47 1 8 1 82Equinix, Inc. EQIX Internet Software & Services 8,833 78 58 47 (10) 9 21 22GenCorp Inc. GY Aerospace & Defense 1,097 35 43 47 4 4 32 41Realogy Holdings Corp. RLGY Real Estate Services 7,223 63 51 47 (5) (5) 3 35Lions Gate Entertainment Corp. LGF Movies & Entertainment 4,367 39 44 46 2 1 9 41Berry Plastics Group, Inc. BERY Metal & Glass Containers 2,757 40 47 46 (1) (0) 1 76Navistar International Corporation NAV Construction & Farm Machinery & Heavy Trucks 3,100 26 46 45 (1) (6) 12 30Spirit AeroSystems Holdings, Inc. Class A SPR Aerospace & Defense 4,114 48 43 44 1 (15) 1 46Compuware Corporation CPWR Application Software 2,428 56 41 44 3 (6) 1 56PHH Corporation PHH Specialized Finance 1,394 36 39 44 5 7 30 22Six Flags Entertainment Corporation SIX Leisure Facilities 3,503 39 47 43 (4) 3 5 51Visteon Corporation VC Auto Parts & Equipment 3,984 66 42 43 1 2 2 39KAR Auction Services, Inc. KAR Diversified Support Services 4,107 49 29 43 14 (4) 2 56Sprouts Farmers Markets, Inc. SFM Food Retail 5,667 25 45 41 (4) (9) 3 81Men's Wearhouse, Inc. MW Apparel Retail 2,425 49 6 41 35 (14) 5 26ViaSat, Inc. VSAT Communications Equipment 2,856 16 40 40 0 (1) 4 95Masonite International Corp. DOOR Building Products 1,721 19 40 40 0 (10) 4 116Caesars Acquisition Co. Class A CACQ Casinos & Gaming 1,637 24 NM 40 NM 8 0 90Outerwall Inc. OUTR Specialty Stores 1,864 36 36 39 4 7 31 13Scorpio Tankers Inc. STNG Oil & Gas Storage & Transportation 2,302 33 40 39 (1) (20) 1 91Charter Communications, Inc. Class A CHTR Cable & Satellite 14,241 86 37 38 1 (5) 7 40Diamondback Energy, Inc. FANG Oil & Gas Exploration & Production 2,489 27 36 38 2 13 5 30Meritor, Inc. MTOR Construction & Farm Machinery & Heavy Trucks 1,020 34 28 38 10 11 8 23Endo Health Solutions Inc. ENDP Pharmaceuticals 7,747 66 27 38 11 6 17 19SemGroup Corporation Class A SEMG Oil & Gas Storage & Transportation 2,769 42 39 37 (1) (5) 6 44Nortek, Inc. NTK Building Products 1,149 12 31 36 5 1 2 171Avis Budget Group, Inc. CAR Trucking 4,333 45 32 36 4 (4) 12 22Carter's, Inc. CRI Apparel Accessories & Luxury Goods 3,914 38 36 36 0 (6) 5 31Community Health Systems, Inc. CYH Health Care Facilities 3,730 92 36 35 (1) 5 9 21Sears Holdings Corporation SHLD Department Stores 5,220 32 38 35 (3) (15) 13 37Tronox Ltd. TROX Commodity Chemicals 1,437 29 29 35 6 (4) 8 34CommonWealth REIT CWH Office REITs 2,760 37 33 35 2 19 3 19Auxilium Pharmaceuticals, Inc. AUXL Pharmaceuticals 1,028 30 35 34 (0) 29 13 15Assured Guaranty Ltd. AGO Property & Casualty Insurance 4,293 69 32 34 2 (0) 2 29Pandora Media, Inc. P Internet Software & Services 5,167 54 42 33 (9) 36 10 6SunCoke Energy, Inc. SXC Steel 1,588 41 36 33 (3) (3) 2 43ACADIA Pharmaceuticals Inc. ACAD Biotechnology 2,271 25 32 33 1 (4) 12 12

Average $3,631 40 45 % 46 % 2 % 1 % 7 % 85Median 2,904 36 41 43 0 0 4 41



Largest increase in concentration

Exhibit 34:



50 stocks with largest INCREASE in hedge fund CONCENTRATION



Cap Owning Stock by Hedge Funds since as % of LiquidateCompany Ticker Sub-sector ($ mil) 31-Dec-13 30-Sep-13 31-Dec-13 Chg 30-Sep-13 Mkt Cap HF PositionMen's Wearhouse, Inc. MW Apparel Retail $2,081 49 6 % 41 % 35 % 30 % 5 % 22U.S. Concrete, Inc. USCR Construction Materials 320 15 13 37 23 13 1 89Jos. A. Bank Clothiers, Inc. JOSB Apparel Retail 1,512 41 8 31 23 26 10 15NorthStar Realty Finance Corp. NRF Mortgage REITs 4,668 74 26 48 22 61 18 31Gentium S.p.A. Sponsored ADR GENT Biotechnology 853 20 2 22 20 110 1 28ADTRAN, Inc. ADTN Communications Equipment 1,502 16 7 25 18 (2) 5 20Discovery Laboratories, Inc. DSCO Biotechnology 195 12 16 33 18 15 4 49Tile Shop Holdings, Inc. TTS Home Improvement Retail 669 21 8 24 16 (55) 22 18Receptos, Inc. RCPT Biotechnology 978 16 6 21 15 67 2 31Model N, Inc. MODN Application Software 297 13 6 21 15 26 2 21Responsys, Inc. MKTG Internet Software & Services 1,399 29 9 23 14 63 2 21KAR Auction Services, Inc. KAR Diversified Support Services 4,030 49 29 43 14 2 2 55E-House (China) Holdings Ltd. Sponsored ADR EJ Real Estate Services 1,562 30 5 19 13 35 1 21Geron Corporation GERN Biotechnology 733 24 4 17 13 48 7 9Media General Inc. MEG Broadcasting 1,414 15 5 18 13 14 4 63ARIAD Pharmaceuticals, Inc. ARIA Biotechnology 1,597 26 5 17 13 (53) 24 3Cole Real Estate Investments, Inc. COLE Retail REITs 7,140 61 14 27 13 24 1 15JAKKS Pacific, Inc. JAKK Leisure Products 129 14 4 17 13 32 34 9Anaren, Inc. ANEN Communications Equipment 376 15 8 21 13 10 1 43PLX Technology, Inc. PLXT Semiconductors 268 15 14 26 12 (2) 1 38BioScrip, Inc. BIOS Health Care Services 560 29 23 35 12 (6) 11 22NuPathe Inc. PATH Pharmaceuticals 139 11 1 13 12 72 4 17Channeladvisor Corporation ECOM Internet Software & Services 950 14 4 15 12 8 5 13Allison Transmission Holdings, Inc. ALSN Auto Parts & Equipment 5,508 31 9 21 12 23 1 76InnerWorkings, Inc. INWK Commercial Printing 406 11 12 23 11 (22) 7 32Five Prime Therapeutics, Inc. FPRX Biotechnology 339 10 3 14 11 33 2 21Endo Health Solutions Inc. ENDP Pharmaceuticals 8,695 66 27 38 11 58 17 21Teekay Corporation TK Oil & Gas Storage & Transportation 3,840 29 21 31 11 29 3 66Unwired Planet, Inc. UPIP Internet Software & Services 166 16 32 43 11 (14) 1 146Vocus, Inc. VOCS Internet Software & Services 271 12 33 43 11 37 9 26Foundation Medicine, Inc. FMI Biotechnology 898 14 2 13 11 (24) 9 10Orthofix International NV OFIX Health Care Equipment 425 17 12 22 10 5 3 25Dynavax Technologies Corporation DVAX Biotechnology 473 20 21 31 10 48 13 24Science Applications International Corp. SAIC IT Consulting & Other Services 1,792 17 1 11 10 11 4 15Equal Energy Ltd. EQU Oil & Gas Exploration & Production 193 12 0 11 10 15 2 19Artisan Partners Asset Management, Inc. Class A APAM Asset Management & Custody Banks 1,236 15 2 12 10 20 4 13Trulia, Inc. TRLA Internet Software & Services 1,146 21 7 17 10 (36) 16 6Chatham Lodging Trust CLDT Specialized REITs 551 28 20 30 10 17 2 52Armstrong World Industries, Inc. AWI Building Products 3,225 41 13 23 10 11 2 24Meritor, Inc. MTOR Construction & Farm Machinery & Heavy Truc 1,100 34 28 38 10 48 8 25Darling International Inc. DAR Agricultural Products 3,148 38 6 16 10 (6) 3 22Audience, Inc. ADNC Electronic Components 255 13 7 17 10 2 1 19Arrowhead Research Corporation ARWR Biotechnology 838 21 35 44 10 234 11 44Hologic, Inc. HOLX Health Care Equipment 5,869 29 8 17 10 3 5 14Horizon Pharma, Inc. HZNP Pharmaceuticals 723 21 14 23 9 206 15 19Headwaters Incorporated HW Construction Materials 924 23 20 30 9 42 3 31OmniAmerican Bancorp, Inc. OABC Regional Banks 246 13 19 28 9 (9) 1 95RealD Inc. RLD Electronic Equipment & Instruments 499 19 9 18 9 44 10 22Achillion Pharmaceuticals, Inc. ACHN Biotechnology 335 16 20 29 9 18 18 15Premier Inc. Class A PINC Health Care Services 1,122 14 6 15 9 10 3 10

Average $1,561 24 12 % 25 % 13 % 27 % 7 % 31Median 876 20 8 23 11 18 4 22



Largest decrease in concentration

Exhibit 35:



50 stocks with largest DECREASE in hedge fund CONCENTRATION



Cap Owning Stock by Hedge Funds since as % of LiquidateCompany Ticker Sub-sector ($ mil) 31-Dec-13 30-Sep-13 31-Dec-13 Chg 30-Sep-13 Mkt Cap HF PositionTaminco Corp. TAM Specialty Chemicals $1,420 13 79 % 11 % (67)% 5 % 1 % 37United Online, Inc. UNTD Internet Software & Services 140 14 66 20 (45) 2 10 10LinnCo. LLC LNCO Oil & Gas Exploration & Production 3,997 27 59 18 (41) 11 3 26Office Depot, Inc. ODP Specialty Stores 2,708 47 52 23 (29) 6 6 13Constellium NV Class A CSTM Aluminum 2,760 32 39 16 (24) 37 0 34J. C. Penney Company, Inc. JCP Department Stores 1,870 57 29 12 (17) (30) 28 1Perrigo Co. Plc PRGO Pharmaceuticals 19,966 35 21 6 (15) 21 5 8Mid-America Apartment Communities, Inc. MAA Residential REITs 5,058 15 17 3 (15) 11 2 4Take-Two Interactive Software, Inc. TTWO Home Entertainment Software 1,873 32 35 21 (14) 5 11 9Yelp Inc. Class A YELP Internet Software & Services 5,146 43 32 19 (13) 36 11 4Einstein Noah Restaurant Group, Inc. BAGL Restaurants 279 13 59 46 (13) (8) 0 115Customers Bancorp, Inc. CUBI Regional Banks 476 15 21 8 (13) 22 1 19TiVo Inc. TIVO Application Software 1,539 32 22 10 (12) 1 4 5Ellie Mae, Inc. ELLI Application Software 809 11 24 13 (12) (9) 12 6Cooper Tire & Rubber Company CTB Tires & Rubber 1,558 27 33 22 (12) (22) 6 9ITT Educational Services, Inc. ESI Education Services 727 27 37 26 (11) 0 33 10IntercontinentalExchange Group, Inc. ICE Specialized Finance 24,715 59 20 9 (11) 19 1 14Equinix, Inc. EQIX Internet Software & Services 9,619 78 58 47 (10) 5 21 24Blackstone Mortgage Trust, Inc. Class A BXMT Mortgage REITs 1,088 17 28 17 (10) 16 8 24YRC Worldwide Inc. YRCW Trucking 600 10 26 16 (10) 25 34 5DHT Holdings, Inc. DHT Oil & Gas Storage & Transportation 549 11 39 29 (10) 83 2 190DigitalGlobe, Inc. DGI Aerospace & Defense 3,036 33 24 15 (9) 28 10 14Pandora Media, Inc. P Internet Software & Services 7,135 54 42 33 (9) 44 10 8Children's Place Retail Stores, Inc. PLCE Apparel Retail 1,185 23 17 8 (9) (8) 10 5Lumos Networks Corp. LMOS Alternative Carriers 398 13 44 36 (8) (16) 2 64ParkerVision, Inc. PRKR Communications Equipment 419 12 20 11 (8) 35 24 8XOMA Corporation XOMA Biotechnology 750 21 42 34 (8) 63 6 28NVR, Inc. NVR Homebuilding 5,243 28 25 16 (8) 29 5 18Ruby Tuesday, Inc. RT Restaurants 350 17 14 5 (8) (24) 5 5Insmed Incorporated INSM Biotechnology 650 17 24 16 (8) 6 8 13Novavax, Inc. NVAX Biotechnology 1,189 17 19 11 (8) 81 13 8Vanda Pharmaceuticals Inc. VNDA Biotechnology 447 16 44 37 (8) 23 13 11Aegerion Pharmaceuticals, Inc. AEGR Biotechnology 1,840 23 23 16 (8) (27) 11 7Core-Mark Holding Company, Inc. CORE Distributors 890 15 13 5 (8) 17 1 12Altisource Residential Corp. Class B RESI Mortgage REITs 1,695 38 34 26 (8) 32 7 28Penn National Gaming, Inc. PENN Casinos & Gaming 889 39 29 21 (8) (8) 8 13Crestwood Midstream Partners LP CMLP Oil & Gas Storage & Transportation 4,188 15 27 19 (7) 12 3 66NuStar GP Holdings, LLC NSH Oil & Gas Storage & Transportation 1,338 10 9 2 (7) 46 0 4BioTelemetry, Inc. BEAT Health Care Services 224 20 25 18 (7) (12) 2 8Pain Therapeutics, Inc. PTIE Pharmaceuticals 229 14 37 30 (7) 85 2 39Sagent Pharmaceuticals, Inc. SGNT Pharmaceuticals 641 11 11 4 (7) (1) 3 7Era Group, Inc. ERA Oil & Gas Equipment & Services 559 18 21 15 (6) 2 2 26Coty Inc. Class A COTY Personal Products 1,203 11 10 4 (6) (8) 11 3Blue Nile, Inc. NILE Internet Retail 426 12 11 5 (6) (19) 14 4Mueller Water Products, Inc. Class A MWA Industrial Machinery 1,426 37 24 18 (6) 13 1 22BioCryst Pharmaceuticals, Inc. BCRX Biotechnology 575 11 38 32 (6) 34 13 13Rite Aid Corporation RAD Drug Retail 5,722 53 19 13 (6) 24 4 5Quality Distribution, Inc. QLTY Trucking 378 27 26 20 (6) 52 2 24FleetMatics Group Ltd. FLTX Systems Software 1,451 12 13 7 (6) 5 9 6Wet Seal, Inc. Class A WTSL Apparel Retail 164 15 33 28 (6) (51) 6 23

Average $2,681 25 30 % 18 % (12)% 15 % 8 % 21Median 1,187 18 26 16 (8) 11 6 12



Highest concentration by equity capitalization band

Exhibit 36:




Equity Number of Percent of Short Avg DaysCap Hedge Funds Equity Cap owned Total Interest Volume to

($ mil) Owning Stock by Hedge Funds Return as % of LiquidateCompany Ticker Sub-sector 31-Dec-13 31-Dec-13 30-Sep-13 31-Dec-13 Chg YTD Mkt Cap HF Position

$100 to $500 MillionQLT Inc. QLTI Biotechnology $285 23 52 % 57 % 5 % 17 % 1 % 239FairPoint Communications, Inc. FRP Integrated Telecommunication Services 299 19 51 54 3 18 11 117Noranda Aluminum Holding Corporation NOR Aluminum 224 13 52 53 1 7 2 70Cherry Hill Mortgage Investment Corp. CHMI Mortgage REITs 134 15 NM 51 NM 4 1 25WCI Communities, Inc. WCIC Homebuilding 492 16 50 49 (1) (3) 1 113Repros Therapeutics Inc. RPRX Pharmaceuticals 421 18 51 48 (3) 1 15 18Einstein Noah Restaurant Group, Inc. BAGL Restaurants 255 13 59 46 (13) 10 0 105Arrowhead Research Corporation ARWR Biotechnology 420 21 35 44 10 75 11 22Xyratex Ltd XRTX Computer Storage & Peripherals 368 22 37 44 7 (0) 0 63Addus HomeCare Corporation ADUS Health Care Services 245 11 45 44 (2) 16 4 28

$500 MIllion to $1 BillionCooper-Standard Holdings Inc. CPS Auto Parts & Equipment $646 11 NM 61 % NM 16 % 1 % 354William Lyon Homes Class A WLH Homebuilding 612 17 62 59 (3) 31 2 63American Railcar Industries, Inc. ARII Construction & Farm Machinery & Heavy Trucks 977 12 56 57 0 9 11 39Idenix Pharmaceuticals, Inc. IDIX Biotechnology 801 15 40 48 8 15 14 49Genomic Health, Inc. GHDX Biotechnology 900 15 46 47 1 (6) 6 80NMI Holdings, Inc. Class A NMIH Thrifts & Mortgage Finance 739 22 NM 43 NM (4) 1 145Beazer Homes USA, Inc. BZH Homebuilding 619 28 32 38 6 (13) 33 11Sears Hometown & Outlet Stores, Inc. SHOS Home Improvement Retail 584 14 43 38 (6) (9) 2 67Aeropostale, Inc. ARO Apparel Retail 714 29 28 37 9 (32) 31 1558.com Inc. Sponsored ADR Class A WUBA Internet Software & Services 519 17 NM 36 NM (6) 4 5

$1 Billion to $5 BillionCVR Energy, Inc. CVI Oil & Gas Refining & Marketing $3,771 20 85 % 83 % (1)% (13)% 2 % 152Federal-Mogul Corporation FDML Auto Parts & Equipment 2,953 17 81 82 0 (14) 0 443Spectrum Brands Holdings, Inc. SPB Household Products 3,717 32 73 73 1 11 2 171Athlon Energy, Inc. ATHL Oil & Gas Exploration & Production 2,484 18 71 70 (1) 11 2 103Loral Space & Communications Inc. LORL Cable & Satellite 1,734 34 68 65 (2) (5) 1 249Harbinger Group Inc. HRG Household Products 1,721 26 66 65 (0) (4) 4 387Houghton Mifflin Harcourt Company HMHC Education Services 2,374 14 NM 59 NM 14 1 202Rexnord Corporation RXN Industrial Machinery 2,641 10 59 57 (2) 5 1 209Leap Wireless International, Inc. LEAP Wireless Telecommunication Services 1,381 33 55 57 2 1 6 36Liberty Interactive Corporation Ventures SeriesLVNTA Internet Retail 4,334 58 51 51 0 8 0 92

$5 Billion to $10 BillionEquinix, Inc. EQIX Internet Software & Services $8,833 78 58 % 47 % (10)% 9 % 21 % 22Realogy Holdings Corp. RLGY Real Estate Services 7,223 63 51 47 (5) (5) 3 35Sprouts Farmers Markets, Inc. SFM Food Retail 5,667 25 45 41 (4) (9) 3 81Endo Health Solutions Inc. ENDP Pharmaceuticals 7,747 66 27 38 11 6 17 19Sears Holdings Corporation SHLD Department Stores 5,220 32 38 35 (3) (15) 13 37Pandora Media, Inc. P Internet Software & Services 5,167 54 42 33 (9) 36 10 6Herbalife Ltd. HLF Personal Products 7,949 49 32 32 0 (16) 20 12W. R. Grace & Co. GRA Specialty Chemicals 7,603 68 32 32 0 (0) 3 38TransDigm Group Incorporated TDG Aerospace & Defense 8,481 49 32 32 0 9 3 37Norwegian Cruise Line Holdings Ltd. NCLH Hotels Resorts & Cruise Lines 7,277 38 35 31 (4) (1) 0 101

$10 Billion to $20 BillionIcahn Enterprises L.P. IEP Auto Parts & Equipment $12,681 10 91 % 90 % (1)% 3 % 0 % 438Charter Communications, Inc. Class A CHTR Cable & Satellite 14,241 86 37 38 1 (5) 7 40Life Technologies Corporation LIFE Life Sciences Tools & Services 13,100 67 30 31 1 0 1 25Dollar General Corporation DG General Merchandise Stores 19,318 89 30 31 1 (5) 2 29Hertz Global Holdings, Inc. HTZ Trucking 12,850 136 31 31 (0) (10) 2 18Constellation Brands, Inc. Class A STZ Distillers & Vintners 11,674 69 29 29 (0) 13 3 20Liberty Global Plc Class C LBTYK Cable & Satellite 13,695 73 29 28 (1) (2) 1 43DISH Network Corporation Class A DISH Cable & Satellite 12,706 72 23 21 (1) (2) 4 17Beam Inc. BEAM Distillers & Vintners 11,098 62 22 21 (0) 23 1 24MGM Resorts International MGM Casinos & Gaming 11,526 60 17 20 3 11 5 9



Exhibit 36 cont'd:



10 stocks in seven EQUITY CAP BANDS with largest hedge fund CONCENTRATION


Equity Number of Percent of Short Avg DaysCap Hedge Funds Equity Cap owned Total Interest Volume to

($ mil) Owning Stock by Hedge Funds Return as % of LiquidateCompany Ticker Sub-sector 31-Dec-13 31-Dec-13 30-Sep-13 31-Dec-13 Chg YTD Mkt Cap HF Position

$20 Billion to $50 BillionMicron Technology, Inc. MU Semiconductors $22,999 102 24 % 24 % 1 % 15 % 11 % 6Crown Castle International Corp. CCI Wireless Telecommunication Services 24,531 80 18 23 5 2 2 30HCA Holdings, Inc. HCA Health Care Facilities 21,366 87 17 20 3 4 1 24Air Products and Chemicals, Inc. APD Industrial Gases 23,640 52 13 18 5 5 1 26Canadian Pacific Railway CP Railroads 26,515 41 18 17 (1) 2 2 40CBS Corporation Class B CBS Broadcasting 35,748 95 15 17 1 2 3 18Time Warner Cable Inc. TWC Cable & Satellite 38,196 132 11 17 5 8 2 16Hess Corporation HES Integrated Oil & Gas 28,019 82 18 16 (2) (4) 2 20Netflix, Inc. NFLX Internet Retail 21,946 59 20 16 (4) 18 9 2Valeant Pharmaceuticals International, Inc. VRX Pharmaceuticals 39,199 58 16 15 (1) 19 1 30

Greater than $50 BillionGeneral Motors Company GM Automobile Manufacturers $56,767 196 11 % 14 % 3 % (12)% 6 % 12American International Group, Inc. AIG Multi-line Insurance 74,740 164 11 11 (0) (4) 1 13priceline.com Incorporated PCLN Internet Retail 59,780 101 13 11 (2) 10 3 8Twenty-First Century Fox, Inc. Class A FOXA Movies & Entertainment 52,167 92 12 11 (2) (7) 3 13Facebook, Inc. Class A FB Internet Software & Services 105,889 128 7 7 0 23 2 2Monsanto Company MON Fertilizers & Agricultural Chemicals 61,178 73 6 6 (0) (6) 1 13Time Warner Inc. TWX Movies & Entertainment 63,077 74 7 6 (1) (6) 2 12Walgreen Co. WAG Drug Retail 54,578 63 4 6 2 13 2 8Mondelez International, Inc. Class A MDLZ Packaged Foods & Meats 61,909 62 6 6 0 (3) 1 10Lowe's Companies, Inc. LOW Home Improvement Retail 51,821 64 5 5 (0) (4) 2 7



Highest concentration by sector

Exhibit 37:



10 stocks in each SECTOR with largest hedge fund CONCENTRATION as % of market cap



Cap Owning Stock by Hedge Funds Return as % of LiquidateCompany Ticker Sub-sector ($ mil) 31-Dec-13 30-Sep-13 31-Dec-13 Chg YTD Mkt Cap HF Position

Consumer DiscretionaryIcahn Enterprises L.P. IEP Auto Parts & Equipment $13,034 10 91 % 90 % (1)% 3 % 0 % 450Federal-Mogul Corporation FDML Auto Parts & Equipment 2,537 17 81 82 0 (14) 0 380Loral Space & Communications Inc. LORL Cable & Satellite 1,650 34 68 65 (2) (5) 1 237Cooper-Standard Holdings Inc. CPS Auto Parts & Equipment 751 11 NM 61 NM 16 1 411William Lyon Homes Class A WLH Homebuilding 800 17 62 59 (3) 31 2 82Houghton Mifflin Harcourt Company HMHC Education Services 2,694 14 NM 59 NM 14 1 229Liberty Interactive Corporation Ventures SeriesLVNTA Internet Retail 4,693 58 51 51 0 8 0 99Lamar Advertising Company Class A LAMR Advertising 4,073 64 53 51 (2) (3) 7 39WCI Communities, Inc. WCIC Homebuilding 481 16 50 49 (1) (3) 1 111Einstein Noah Restaurant Group, Inc. BAGL Restaurants 279 13 59 46 (13) 10 0 115

Consumer StaplesSpectrum Brands Holdings, Inc. SPB Household Products $4,094 32 73 % 73 % 1 % 11 % 2 % 189Harbinger Group Inc. HRG Household Products 1,658 26 66 65 (0) (4) 4 373Sprouts Farmers Markets, Inc. SFM Food Retail 5,161 25 45 41 (4) (9) 3 74Herbalife Ltd. HLF Personal Products 6,706 49 32 32 0 (16) 20 10Constellation Brands, Inc. Class A STZ Distillers & Vintners 13,225 69 29 29 (0) 13 3 22Post Holdings, Inc. POST Packaged Foods & Meats 1,787 32 20 27 8 11 9 29Cott Corporation COT Soft Drinks 757 18 21 22 1 (0) 0 48Chiquita Brands International, Inc. CQB Packaged Foods & Meats 501 20 23 22 (0) (9) 4 22Beam Inc. BEAM Distillers & Vintners 13,761 62 22 21 (0) 23 1 30SUPERVALU INC. SVU Food Retail 1,535 34 24 21 (3) (19) 13 11

EnergyCVR Energy, Inc. CVI Oil & Gas Refining & Marketing $3,270 20 85 % 83 % (1)% (13)% 2 % 131Athlon Energy, Inc. ATHL Oil & Gas Exploration & Production 2,759 18 71 70 (1) 11 2 115Scorpio Tankers Inc. STNG Oil & Gas Storage & Transportation 1,883 33 40 39 (1) (20) 1 75Diamondback Energy, Inc. FANG Oil & Gas Exploration & Production 2,808 27 36 38 2 13 5 34SemGroup Corporation Class A SEMG Oil & Gas Storage & Transportation 2,623 42 39 37 (1) (5) 6 42Harvest Natural Resources, Inc. HNR Oil & Gas Exploration & Production 191 23 38 33 (5) 0 14 22Forest Oil Corporation FST Oil & Gas Exploration & Production 371 32 32 31 (0) (14) 18 9Resolute Energy Corporation REN Oil & Gas Exploration & Production 669 18 29 31 3 (3) 10 40Teekay Corporation TK Oil & Gas Storage & Transportation 3,840 29 21 31 11 14 3 66Enbridge Energy Management, L.L.C. EEQ Oil & Gas Storage & Transportation 1,796 14 28 30 2 (2) 1 67

FinancialsCherry Hill Mortgage Investment Corp. CHMI Mortgage REITs $139 15 NM 51 % NM 4 % 1 % 27NorthStar Realty Finance Corp. NRF Mortgage REITs 4,532 74 26 48 22 8 18 30Realogy Holdings Corp. RLGY Real Estate Services 6,842 63 51 47 (5) (5) 3 33PHH Corporation PHH Specialized Finance 1,497 36 39 44 5 7 30 24JGWPT Holdings, Inc. Class A JGW Consumer Finance 174 15 NM 43 NM (11) 2 19First Security Group, Inc. FSGI Regional Banks 123 12 46 43 (3) (20) 1 137NMI Holdings, Inc. Class A NMIH Thrifts & Mortgage Finance 709 22 NM 43 NM (4) 1 139Central Pacific Financial Corp. CPF Regional Banks 783 12 39 36 (3) (7) 0 153CommonWealth REIT CWH Office REITs 3,241 37 33 35 2 19 3 22Imperial Holdings, Inc. IFT Consumer Finance 124 10 27 35 8 (10) 1 128

Health CareQLT Inc. QLTI Biotechnology $334 23 52 % 57 % 5 % 17 % 1 % 280Idenix Pharmaceuticals, Inc. IDIX Biotechnology 1,037 15 40 48 8 15 14 64Repros Therapeutics Inc. RPRX Pharmaceuticals 423 18 51 48 (3) 1 15 18Genomic Health, Inc. GHDX Biotechnology 849 15 46 47 1 (6) 6 76Arrowhead Research Corporation ARWR Biotechnology 754 21 35 44 10 75 11 40Addus HomeCare Corporation ADUS Health Care Services 284 11 45 44 (2) 16 4 33Syneron Medical Ltd ELOS Health Care Equipment 410 16 40 40 1 (7) 0 132Endo Health Solutions Inc. ENDP Pharmaceuticals 8,274 66 27 38 11 6 17 20Rigel Pharmaceuticals, Inc. RIGL Biotechnology 277 21 32 37 6 11 3 37Vanda Pharmaceuticals Inc. VNDA Biotechnology 447 16 44 37 (8) 8 13 11



Exhibit 37 cont'd:



10 stocks in each SECTOR with largest hedge fund CONCENTRATION as % of market cap



Cap Owning Stock by Hedge Funds Return as % of LiquidateCompany Ticker Sub-sector ($ mil) 31-Dec-13 30-Sep-13 31-Dec-13 Chg YTD Mkt Cap HF Position

IndustrialsRexnord Corporation RXN Industrial Machinery $2,876 10 59 % 57 % (2)% 5 % 1 % 228American Railcar Industries, Inc. ARII Construction & Farm Machinery & Heavy Trucks 1,067 12 56 57 0 9 11 42Macquarie Infrastructure Company LLC MIC Airport Services 3,250 45 46 47 1 8 1 88GenCorp Inc. GY Aerospace & Defense 1,155 35 43 47 4 4 32 43Navistar International Corporation NAV Construction & Farm Machinery & Heavy Trucks 2,921 26 46 45 (1) (6) 12 28Spirit AeroSystems Holdings, Inc. Class A SPR Aerospace & Defense 3,480 48 43 44 1 (15) 1 39KAR Auction Services, Inc. KAR Diversified Support Services 4,030 49 29 43 14 (4) 2 55Masonite International Corp. DOOR Building Products 1,564 19 40 40 0 (10) 4 105Meritor, Inc. MTOR Construction & Farm Machinery & Heavy Trucks 1,100 34 28 38 10 11 8 25Nortek, Inc. NTK Building Products 1,128 12 31 36 5 1 2 167

Information TechnologyEquinix, Inc. EQIX Internet Software & Services $9,588 78 58 % 47 % (10)% 9 % 21 % 23Compuware Corporation CPWR Application Software 2,289 56 41 44 3 (6) 1 53Xyratex Ltd XRTX Computer Storage & Peripherals 364 22 37 44 7 (0) 0 62Vocus, Inc. VOCS Internet Software & Services 271 12 33 43 11 12 9 26Unwired Planet, Inc. UPIP Internet Software & Services 166 16 32 43 11 8 1 146ViaSat, Inc. VSAT Communications Equipment 2,930 16 40 40 0 (1) 4 97Vitesse Semiconductor Corporation VTSS Semiconductors 213 10 39 39 (0) 22 0 101Net 1 UEPS Technologies, Inc. UEPS Application Software 442 18 39 38 (1) 10 0 11058.com Inc. Sponsored ADR Class A WUBA Internet Software & Services 525 17 NM 36 NM (6) 4 5Move, Inc. MOVE Internet Software & Services 515 30 28 34 5 (18) 6 33

MaterialsNoranda Aluminum Holding Corporation NOR Aluminum $254 13 52 % 53 % 1 % 7 % 2 % 79Berry Plastics Group, Inc. BERY Metal & Glass Containers 2,712 40 47 46 (1) (0) 1 75U.S. Concrete, Inc. USCR Construction Materials 320 15 13 37 23 (0) 1 89Tronox Ltd. TROX Commodity Chemicals 1,400 29 29 35 6 (4) 8 33SunCoke Energy, Inc. SXC Steel 1,539 41 36 33 (3) (3) 2 42W. R. Grace & Co. GRA Specialty Chemicals 7,564 68 32 32 0 (0) 3 37AEP Industries Inc. AEPI Metal & Glass Containers 242 14 24 31 7 (19) 1 22Wausau Paper Corp. WPP Paper Products 640 11 28 30 2 4 4 72Headwaters Incorporated HW Construction Materials 924 23 20 30 9 30 3 31Huntsman Corporation HUN Diversified Chemicals 5,619 56 25 28 3 (5) 4 20

Telecommunication ServicesLeap Wireless International, Inc. LEAP Wireless Telecommunication Services $1,392 33 55 % 57 % 2 % 1 % 6 % 36FairPoint Communications, Inc. FRP Integrated Telecommunication Services 355 19 51 54 3 18 11 139Lumos Networks Corp. LMOS Alternative Carriers 391 13 44 36 (8) (14) 2 63Hawaiian Telcom Holdco, Inc. HCOM Integrated Telecommunication Services 285 16 32 33 1 (7) 7 124NTELOS Holdings Corp. NTLS Wireless Telecommunication Services 347 17 34 30 (4) (21) 9 28Crown Castle International Corp. CCI Wireless Telecommunication Services 24,892 80 18 23 5 2 2 30tw telecom inc. Class A TWTC Alternative Carriers 4,253 24 19 19 0 (1) 3 23Cbeyond, Inc. CBEY Integrated Telecommunication Services 213 17 11 16 5 3 2 21Cogent Communications Group, Inc. CCOI Alternative Carriers 2,019 19 14 15 0 5 4 29Level 3 Communications, Inc. LVLT Alternative Carriers 8,560 33 10 13 4 16 4 18

UtilitiesNRG Yield, Inc. Class A NYLD Electric Utilities $828 20 30 % 28 % (2)% (6)% 11 % 16Dynegy Inc. DYN Independent Power Producers & Energy Traders 2,198 19 22 % 21 (1)% (1) 8 42Calpine Corporation CPN Independent Power Producers & Energy Traders 8,463 43 13 17 4 5 1 22NRG Energy, Inc. NRG Independent Power Producers & Energy Traders 9,227 50 15 14 (1) (1) 4 13Pattern Energy Group, Inc. Class A PEGI Independent Power Producers & Energy Traders 949 16 5 11 5 (12) 2 9OGE Energy Corp. OGE Electric Utilities 7,061 36 7 9 2 6 1 19CMS Energy Corporation CMS Multi-Utilities 7,583 32 9 9 (0) 8 3 9Portland General Electric Company POR Electric Utilities 2,457 19 14 9 (5) 5 15 10CenterPoint Energy, Inc. CNP Multi-Utilities 10,347 37 6 8 1 5 2 10UNS Energy Corp UNS Electric Utilities 2,508 19 4 6 2 1 4 8



Highest short interest: Stocks under $1 billion

Exhibit 38:



50 stocks UNDER $1 billion with largest SHORT INTEREST as % of market cap



Cap Owning Stock by Hedge Funds Return as % of LiquidateCompany Ticker Sub-sector ($ mil) 31-Dec-13 30-Sep-13 31-Dec-13 Chg YTD Mkt Cap HF PositionRadioShack Corporation RSH Computer & Electronics Retail $264 21 12 % 17 % 5 % 2 % 40 % 6NQ Mobile, Inc. Sponsored ADR Class A NQ Application Software 547 21 19 26 7 23 38 2YRC Worldwide Inc. YRCW Trucking 600 10 26 16 (10) 21 34 5JAKKS Pacific, Inc. JAKK Leisure Products 133 14 4 17 13 (11) 34 9Beazer Homes USA, Inc. BZH Homebuilding 539 28 32 38 6 (13) 33 9ITT Educational Services, Inc. ESI Education Services 727 27 37 26 (11) (7) 33 10NII Holdings, Inc. Class B NIHD Wireless Telecommunication Services 541 16 8 8 1 14 33 3Smith & Wesson Holding Corporation SWHC Leisure Products 707 20 7 6 (0) (6) 33 2Sarepta Therapeutics, Inc. SRPT Biotechnology 983 16 23 22 (1) 28 32 4Titan Machinery Inc. TITN Trading Companies & Distributors 346 10 6 5 (1) (9) 31 3Aeropostale, Inc. ARO Apparel Retail 484 29 28 37 9 (32) 31 10Swift Energy Company SFY Oil & Gas Exploration & Production 535 13 5 2 (3) (9) 31 1Dendreon Corporation DNDN Biotechnology 465 15 6 5 (0) (1) 31 2VIVUS, Inc. VVUS Pharmaceuticals 693 23 18 18 (0) (25) 30 8Dex Media, Inc. DXM Publishing 116 10 33 34 0 (3) 30 18Magicjack Vocaltec Ltd. CALL Alternative Carriers 323 13 2 8 6 45 28 4Veeva Systems, Inc. Class A VEEV Health Care Technology 514 21 0 28 28 7 27 4LeapFrog Enterprises, Inc. Class A LF Leisure Products 426 18 4 4 (0) (17) 27 1Green Plains Renewable Energy, Inc. GPRE Oil & Gas Refining & Marketing 746 26 20 27 7 26 27 14Angie's List, Inc. ANGI Internet Software & Services 871 13 3 4 1 (2) 26 2Diamond Foods, Inc. DMND Packaged Foods & Meats 599 19 9 17 7 3 25 10Neonode Inc. NEON Electronic Manufacturing Services 254 10 16 13 (2) 6 25 10Accuray Incorporated ARAY Health Care Equipment 754 18 21 25 4 14 25 18Penn Virginia Corporation PVA Oil & Gas Exploration & Production 836 23 24 26 2 36 24 9ParkerVision, Inc. PRKR Communications Equipment 419 12 20 11 (8) (1) 24 8Corinthian Colleges, Inc. COCO Education Services 124 11 8 11 4 (20) 23 9Liquidity Services, Inc. LQDT Internet Software & Services 793 17 9 11 2 8 23 7Exact Sciences Corporation EXAS Biotechnology 869 14 15 16 1 4 22 10Sequenom, Inc. SQNM Life Sciences Tools & Services 274 13 19 13 (5) 1 22 6Tile Shop Holdings, Inc. TTS Home Improvement Retail 672 21 8 24 16 (27) 22 18Spectrum Pharmaceuticals, Inc. SPPI Biotechnology 521 13 15 11 (4) (8) 21 7A. M. Castle & Co. CAS Steel 358 16 25 24 (1) 4 21 31Western Asset Mortgage Capital Corporation WMC Mortgage REITs 384 11 2 5 2 6 21 2XPO Logistics, Inc. XPO Air Freight & Logistics 1,248 10 12 9 (3) 4 21 10Rockwell Medical, Inc. RMTI Health Care Equipment 519 11 3 3 (0) 24 21 1Annie's, Inc. BNNY Packaged Foods & Meats 629 13 4 4 (0) (14) 21 2Arch Coal, Inc. ACI Coal & Consumable Fuels 868 29 3 4 1 (8) 20 1Goodrich Petroleum Corporation GDP Oil & Gas Exploration & Production 742 23 15 19 4 (0) 20 6Francesca's Holdings Corporation FRAN Apparel Retail 756 14 4 3 (1) (2) 20 1Healthways, Inc. HWAY Health Care Services 491 16 16 23 7 (9) 20 15HCI Group, Inc. HCI Property & Casualty Insurance 499 11 5 3 (2) (19) 20 2Bon-Ton Stores, Inc. BONT Department Stores 174 16 20 21 1 (38) 19 14Fairway Group Holdings Corp. Class A FWM Food Retail 213 15 5 8 4 (59) 19 5hhgregg, Inc. HGG Computer & Electronics Retail 273 17 5 4 (2) (34) 19 3Medifast, Inc. MED Personal Products 371 11 18 18 (0) 2 19 13Sangamo BioSciences, Inc. SGMO Biotechnology 1,119 17 25 27 2 30 18 20Achillion Pharmaceuticals, Inc. ACHN Biotechnology 345 16 20 29 9 8 18 15Forest Oil Corporation FST Oil & Gas Exploration & Production 371 32 32 31 (0) (14) 18 9Nutrisystem, Inc. NTRI Internet Retail 434 29 22 28 5 (8) 18 20CBIZ, Inc. CBZ Research & Consulting Services 421 10 6 6 1 (3) 18 11

Average $538 17 14 % 16 % 2 % (2)% 25 % 8Median 516 16 13 16 1 (1) 24 7



Highest short interest: Stocks over $1 billion

Exhibit 39:



50 stocks OVER $1 billion with largest SHORT INTEREST as % of market cap



Cap Owning Stock by Hedge Funds Return as % of LiquidateCompany Ticker Sub-sector ($ mil) 31-Dec-13 30-Sep-13 31-Dec-13 Chg YTD Mkt Cap HF PositionMyriad Genetics, Inc. MYGN Biotechnology $2,294 34 16 % 22 % 5 % 50 % 48 % 8SodaStream International Ltd. SODA Household Appliances 854 24 22 19 (3) (18) 40 3Chemed Corporation CHE Health Care Services 1,356 14 5 5 1 0 38 4Walter Energy, Inc. WLT Diversified Metals & Mining 688 30 19 23 3 (34) 36 2World Acceptance Corporation WRLD Consumer Finance 1,096 16 21 21 (0) 15 35 16Lindsay Corporation LNN Construction & Farm Machinery & Heavy Truc 1,188 14 5 3 (1) 11 32 2GenCorp Inc. GY Aerospace & Defense 1,152 35 43 47 4 4 32 43Questcor Pharmaceuticals, Inc. QCOR Pharmaceuticals 4,210 29 15 17 2 28 31 5Cliffs Natural Resources Inc. CLF Steel 3,546 45 8 13 5 (12) 31 2Outerwall Inc. OUTR Specialty Stores 1,836 36 36 39 4 7 31 12Invensense, Inc. INVN Electronic Components 1,812 21 6 7 1 (1) 30 2PHH Corporation PHH Specialized Finance 1,497 36 39 44 5 7 30 24Arena Pharmaceuticals, Inc. ARNA Biotechnology 1,515 12 2 3 1 18 29 1Polypore International, Inc. PPO Electrical Components & Equipment 1,495 12 8 5 (3) (14) 29 4J. C. Penney Company, Inc. JCP Department Stores 1,870 57 29 12 (17) (33) 28 1Sturm, Ruger & Company, Inc. RGR Leisure Products 1,421 19 5 5 0 0 28 3KB Home KBH Homebuilding 1,594 31 5 9 4 4 28 2Radian Group Inc. RDN Thrifts & Mortgage Finance 2,732 41 25 27 3 12 27 7Alpha Natural Resources, Inc. ANR Coal & Consumable Fuels 1,118 36 12 17 5 (29) 27 3PacWest Bancorp PACW Regional Banks 1,821 19 10 7 (3) (6) 26 8Tesla Motors, Inc. TSLA Automobile Manufacturers 24,302 38 4 4 1 32 26 1Green Mountain Coffee Roasters, Inc. GMCR Packaged Foods & Meats 17,276 38 10 11 1 54 26 4AK Steel Holding Corporation AKS Steel 942 22 6 7 1 (16) 25 1Molycorp, Inc. MCP Diversified Metals & Mining 1,298 25 4 7 3 (4) 25 2Swift Transportation Company Class A SWFT Trucking 2,163 32 15 15 (1) 10 25 8GT Advanced Technologies Inc. GTAT Semiconductor Equipment 1,551 24 4 5 0 34 24 1Digital Realty Trust, Inc. DLR Office REITs 6,857 16 1 3 2 9 24 3ARIAD Pharmaceuticals, Inc. ARIA Biotechnology 1,606 26 5 17 13 27 24 3IMAX Corporation IMAX Movies & Entertainment 1,753 19 13 13 (1) (12) 23 13Ironwood Pharmaceuticals, Inc. Class A IRWD Biotechnology 1,613 15 16 15 (0) 19 23 17Umpqua Holdings Corporation UMPQ Regional Banks 1,916 13 3 5 2 (11) 23 5United States Steel Corporation X Steel 3,939 41 7 8 1 (8) 23 2ResMed Inc. RMD Health Care Equipment 6,480 23 3 3 (1) (2) 23 3Cirrus Logic, Inc. CRUS Semiconductors 1,133 22 6 8 2 (11) 22 2athenahealth, Inc. ATHN Health Care Technology 7,065 17 3 5 2 41 22 4Deckers Outdoor Corporation DECK Footwear 2,907 31 9 11 2 (0) 22 3Encore Capital Group, Inc. ECPG Consumer Finance 1,299 13 8 11 2 2 22 11Ryman Hospitality Properties, Inc. RHP Specialized REITs 2,072 31 28 27 (1) (2) 22 15Bill Barrett Corporation BBG Oil & Gas Exploration & Production 1,204 17 5 10 5 (8) 22 4GameStop Corp. Class A GME Computer & Electronics Retail 4,124 44 9 10 0 (28) 22 3CACI International Inc Class A CACI IT Consulting & Other Services 1,711 20 15 16 1 (0) 21 13Synaptics Incorporated SYNA Semiconductors 2,216 20 3 3 0 20 21 1PDL BioPharma, Inc. PDLI Biotechnology 1,181 21 15 14 (1) (0) 21 10Ultra Petroleum Corp. UPL Oil & Gas Exploration & Production 3,641 20 8 4 (4) 10 21 2Equinix, Inc. EQIX Internet Software & Services 9,619 78 58 47 (10) 9 21 24j2 Global, Inc. JCOM Internet Software & Services 2,283 11 3 3 (0) (2) 21 4IPG Photonics Corporation IPGP Electronic Manufacturing Services 3,504 12 1 1 (0) (13) 20 1OpenTable, Inc. OPEN Internet Software & Services 1,690 26 15 9 (6) (9) 20 4BlackBerry Limited BBRY Communications Equipment 4,723 28 7 9 2 21 20 2Interoil Corporation IOC Integrated Oil & Gas 2,543 24 6 8 1 1 20 5

Average $3,194 27 12 % 13 % 1 % 4 % 26 % 6Median 1,816 24 8 10 1 0 25 4



Appendix C: 100 largest hedge funds ranked by equity assets

Note: Based on analysis of 13-F filings from 778 hedge funds with $1.2 trillion of single-stock equity assets. Holdings as of December 31, 2013; Pricing as of February 14, 2014.


Number of Equity Number of EquitySecurities Assets Securities Assets

Institution Name Held ($ Billions) Institution Name Held ($ Billions)

Citadel Advisors LLC 1,983 $44 Partner Fund Management LP 58 $5D. E. Shaw & Co. LP 1,973 42 Appaloosa Management LP 63 5Renaissance Technologies LLC 1,990 41 Farallon Capital Management LLC 85 5Adage Capital Management LP 661 37 Visium Asset Management LP 795 5AQR Capital Management LLC 1,939 36 Marshall Wace North America LP 663 5Icahn Associates Corp. 21 31 Mason Capital Management LLC 24 4Two Sigma Investments LLC 1,930 26 Steadfast Capital Management LP 55 4Millennium Management LLC 1,935 24 Horizon Asset Management LLC 339 4Lone Pine Capital LLC 53 23 UBS O'Connor LLC 272 4Viking Global Investors LP 65 22 The Baupost Group LLC 24 4Paulson & Co., Inc. 74 17 Energy Income Partners LLC 70 4S.A.C. Capital Advisors LP 1,658 15 Gotham Asset Management LLC 952 4OZ Management LP 271 14 Scout Capital Management LLC 23 4Marketfield Asset Management LLC 70 14 Kensico Capital Management Corp. 33 4Discovery Capital Management LLC 130 14 Harvest Fund Advisors LLC 57 4Kayne Anderson Capital Advisors LP 124 13 Corvex Management LP 40 4Glenview Capital Management LLC 60 13 Samlyn Capital LLC 87 4Gateway Investment Advisers LLC 845 12 Alkeon Capital Management LLC 84 4ValueAct Capital Management LP 12 12 Longview Asset Management LLC 6 4Highfields Capital Management LP 79 12 Cadian Capital Management LLC 73 4Coatue Management LLC 48 10 Moore Capital Management LP 269 4Blue Ridge Capital LLC (New York) 53 10 Westchester Capital Management LLC 82 4International Value Advisers LLC 124 9 Luxor Capital Group LP 41 4Absolute Return Capital LLC 662 9 MHR Fund Management LLC 11 4Pershing Square Capital Management LP 9 9 Weiss Multi-Strategy Advisers LLC 870 4Tiger Global Management LLC 67 9 Hoplite Capital Management LLC 38 4Carlson Capital LP 250 8 JAT Capital Management LP 54 4Apollo Capital Management LP 15 8 Brookside Capital LLC 45 4Greenlight Capital, Inc. 42 8 Scopus Asset Management LP 158 3JANA Partners LLC 39 8 Chilton Investment Co. LLC 162 3Maverick Capital Ltd. 56 8 Harbinger Capital Partners LLC 9 3PointState Capital LP 129 8 Clough Capital Partners LP 228 3Omega Advisors, Inc. 84 8 Meritage Group LP 21 3SPO Partners & Co. 14 7 PEAK6 Advisors LLC 1,285 3Senator Investment Group LP 60 7 Arrowpoint Asset Management LLC 261 3Fir Tree, Inc. 72 7 Center Coast Capital Advisors LP 33 3Gardner Russo & Gardner 76 7 Pine River Capital Management LP 315 3Gilder, Gagnon, Howe & Co. LLC 237 7 Eton Park Capital Management LP 38 3York Capital Management Global Advisors LLC 144 7 Ascend Capital LLC 163 3Elliott Management Corp. 36 6 Cushing MLP Asset Management LP 177 3Levin Capital Strategies LP 294 6 Salient Capital Advisors LLC 157 3Eminence Capital LLC 65 6 Heights Capital Management, Inc. 39 3Trian Fund Management LP 11 6 Gates Capital Management, Inc. 27 3GMT Capital Corp. 85 6 East Side Capital Corp. 32 3Highbridge Capital Management LLC 579 6 Criterion Capital Management LLC 73 3Pennant Capital Management LLC 49 6 Water Street Capital, Inc. 49 3Soroban Capital Partners LLC 25 6 Valinor Management LLC 42 3Third Point LLC 40 6 Amici Capital LLC 104 3Balyasny Asset Management LP 350 6 ESL Investments, Inc. 6 3Baker Bros. Advisors LP 82 5 PAR Capital Management, Inc. 57 3

Equity Assets As a %($ Billions) of Total

Largest 50 $680 56%Largest 100 863 71Total 778 $1,212 100%



Appendix D: GS Portfolio Strategy Baskets on Bloomberg Basket Construction and Constituent Weighting

Our hedge fund baskets are equally weighted at rebalance. Stocks with higher returns will increase their weight in the basket, while stocks with lower returns will fall. Our baskets are automatically adjusted for dividends and corporate actions. Dividends for a company increase that company’s weight within the basket. If a company is acquired, that constituent’s weight at closing in the basket will be reallocated to the remaining constituents in proportion to their current basket weights. Our hedge fund baskets are not designed to be sector-neutral to the S&P 500.

Permission to our GS Portfolio Strategy Baskets

To receive access to the Goldman Sachs US Portfolio Strategy <GSTH> Bloomberg page, please follow the directions below:

1. Please go to your Bloomberg terminal and type IAM <go>.

2. Take a screen shot of the page.

3. Send the attachment and an e-mail to your Goldman Sachs salesperson requesting access to the US Portfolio Strategy Bloomberg <GSTH> page.

Exhibit 40: Strategy baskets are listed on Bloomberg <GSTH>: Portfolio Strategy / Theme and Sector Baskets

Note: The ability to trade baskets will depend upon market conditions, including liquidity and borrow constraints at the time of trade.

Source: Bloomberg and Goldman Sachs Global Investment Research.

Permission to our GS Portfolio Strategy Baskets

To receive access to the Goldman Sachs US Portfolio Strategy <GSTH> Bloomberg page,please follow the directions below:1. Please go to your Bloomberg terminal and type IAM <go>.2. Take a screen shot of the page.3. Send the attachment and an email to your Goldman Sachs salesperson requesting access tothe US Portfolio Strategy Bloomberg <GSTH> page .

Bloomberg<GSTH2>

CyclicalsGSSBCYCL

DefensivesGSSBDEFS

GlobalGSSBGLBL

DomesticGSSBDOMS

Global CyclicalsGSSBGCYC

Domestic CyclicalGSSBDCYC

Global DefensiveGSSBGDEF

Domestic DefensiveGSSBDDEF

Sector Baskets

<GSTH1>Hedge Fund

GSTHHVIPGSTHVISPGSTHHFHIGSTHHFSL

ValuationGSTHDIVGGSTHEPSRGSTHSHRPGSTHSVLUGSTHAVLU

Thematic BasketsBloombergMacroeconomic

GSTHGARRGSTHAINTGSTHINTLGSTHBETAGSTHBRIC

GSTHWEUR

FundamentalGSTHSEASGSTHUSTYGSTHQUALGSTHREVGGSTHGROEGSTHOPHIGSTHOPLOGSTHHTAXGSTHLTAXGSTHSBALGSTHWBAL



Equity basket disclosure

The Securities Division of the firm may have been consulted as to the various components of the baskets of securities discussed in this report prior to their launch; however, none of this research, the conclusions expressed herein, nor the timing of this report was shared with the Securities Division.



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50 Hedge Fund Holdings

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