Hedge funds reversed course on these stocks and are now betting on them
Hedge funds reversed course on some stocks and flipped from shorting the names to buying them long, according to Jefferies. In general, hedge funds got more cyclical in 2021, shifting to names that benefit as the economy reopens from the pandemic. "We see that hedge funds continued to get cyclical, as their overweight to this cohort touched 6.3% with 38% of the assets in this group. This is up from an overweight of 1.7% and weight at 30.7% back at the end of August, when these stocks started to perform better," Jefferies U.S. equity strategist Steven DeSanctis told clients. Using aggregate holdings data of some hedge funds from MSCI, Jefferies analysts identified stocks that hedge funds changed directions on, betting long instead of short. "The Short to Long portfolio has some very interesting stocks, as always, but the net short weights are all pretty slim. Tech has five names along with Staples," said DeSanctis. Take a look at the list here. International Flavors & Fragrances forced the largest change of heart for hedge funds. The Wall Street firms are now net long on the name, after being mostly sold short to start the year. Shares of International Flavors & Fragrances is up about 32% year to date. Micron Technology and Intel are on the list. Wall Street predicts a strong year for chips as the 5G cycle heats up. Plus, Goldman Sachs expects semiconductor companies — the firms behind the technology used for electric vehicle safety features — to outperform amid the boom in autonomous driving . Cyclical stocks Costco and Dollar General also made the list. These names were big winners during the pandemic. Costco is down 1% for the year, while Dollar General is up shy of 2% for 2021. Turbo Tax-parent Intuit also flipped from being shorted to bought long, according to Jefferies. Shares of the stock are up about 9% this year. Western Digital , Biogen , Wells Fargo and Coca-Cola are also names that hedge funds started buying long this year. Hedge funds typically disclose their holdings four times a year in a filing with the Securities and Exchange Commission. These so-called Form 13F filings show the funds' underlying stocks as of the final day of the preceding quarter. The most recent public data shows holdings as of Dec. 31. The next round of public disclosures, which will show holdings as of the end of March, are expected in mid-May. — with reporting from CNBC's Michael Bloom.

Shopping carts are lined up in front of a Costco store on February 25, 2021 in Inglewood, California. Mario Tama | Getty Images