Hedge Funds Selling Out Of These Five Stocks: American Airlines Group Inc (AAL), Ally Financial Inc (ALLY), SanDisk Corporation (SNDK)

Lastly is Schlumberger Limited. (NYSE:SLB), which has 48 funds invested in it, down from 65 at the end of 2014, while the aggregate investment of the funds fell to $1.79 billion from $2.08 billion. The energy sector has of course been a rough one for nearly a year now and Schlumberger Limited. (NYSE:SLB) was not immune to that, with first quarter revenue falling by 19% quarter over quarter and 9% year over year, while Schlumberger’s management has further predicted a 30% dip for the company’s North American sales in 2015 and a 15% dip internationally. On the other hand, Schlumberger Limited. (NYSE:SLB) is one of the best oil field service companies in the world which is bound to return to its strong track record of earnings once oil prices rebound according to David Katz of Matrix Asset Advisors, who ranks the stock as one of his top picks. Some investors who didn’t want to stick out the wait included Encompass Capital Advisors and Bluecrest Capital Management.

Why are we interested in the 13F filings and trading activity of a select group of hedge funds? We use these filings to determine the top 15 small-cap stocks held by these elite funds, based on 16 years of research that showed their top small-cap picks are much more profitable than both their large-cap stocks and the broader market as a whole. These small-cap stocks beat the S&P 500 Total Return Index by an average of nearly one percentage point per month in our backtests, which were conducted over the period of 1999 to 2012. Moreover, since the beginning of forward testing from August 2012, the strategy worked just as our research predicted, outperforming the market every year and returning 139% over the last 32 months, which is more than 80 percentage points higher than the returns of the S&P 500 ETF (SPY) (see more details).

Disclosure: None