The Hot Stocks That Hedge Funds Missed

It’s not just short positions that are hurting hedge funds this year. Several managers have ignored some of the year’s best-performing stocks.

Hedge fund managers are paid handsomely to spot undervalued investment opportunities. But this year the so-called smart-money set has missed a slew of hot stock picks.

Take Best Buy, a home-run stock that most hedge funds missed. Shares of the electronics retailer, which surged more than 13 percent on Tuesday, have nearly doubled this year alone, making it one of the best-performing stocks of this year.

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