A Billionaire's Dividend Picks

One common misconception about hedge funds' quarterly 13F filings is that because this information is old (the most recent filings disclose many long equity positions as of the end of June), it is useless for investors. Not so. Our research has shown that the most popular small-cap stocks among hedge funds earn an average excess return of 18 percentage points per year, and our own portfolio based on this strategy has outperformed the S&P 500 by 33 percentage points in the last 11 months.

We believe that using hedge funds' picks as a screen of stocks in a number of areas, including dividend stocks, and then doing further research on any interesting names, can also be useful, although it's tough to quantify any additional returns that investors might see. Read on for our quick take on the five largest positions in billionaire Glenn Dubin's Highbridge Capital Management's most recent 13F portfolio which currently pay dividend yields of 3% or higher....466 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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