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UBS released a list of what its equities analysts view to be the most crowded trades in the market right now.
As active managers pile into these stocks, the price climbs. This moving-with-the-herd strategy can pay off in a bull market.
But there is risk built into that strategy as well. Essentially, the first sign of trouble can lead to a rush to sell with everyone rushing towards the exits.
UBS put together this overweight list using institutional ownership data provided by FactSet.
The list ranges from internet giants like Google and Alibaba to healthcare companies like UnitedHealth and Medtronic.
Check out the list of 10 stocks below:
Aflac Incorporated
Markets Insider
Ticker: AFL
Investor Weight: 0.4%
Active Weight: 0.3%
WoW Change: Up
Source: FactSet, MSCI, UBS Quantitative Research
UnitedHealth Group Incorporated
Markets Insider
Ticker: UNH
Investor Weight: 0.6%
Active Weight: 0.2%
WoW Change: Up
Source: FactSet, MSCI, UBS Quantitative Research
Broadcom Limited
Markets Insider
Ticker: AVGO
Investor Weight: 0.4%
Active Weight: 0.2%
WoW Change: Up
Source: FactSet, MSCI, UBS Quantitative Research
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