It may come as a surprise to many that even the dumbest of the dumb money, the New York State Common Retirement System, which according to its most recent 13F had about $44 billion in total equity assets (Calpers was a distant second at $29 billion) did not participate practically at all in the last quarter's run up, and in fact of its top 30 positions, except for one notable addition, the fund was a net seller. Ironically, and true to its definition of dumb money, the fund added 7 million shares of Bank Of America: probably the very same shares that John Paulson was selling to whoever was dumb enough to bid them at that price.

As the chart below demonstrates, the top ten positions at the New York Fund were:

Exxon ($1.2 billion)

Microsoft ($740 million)

JPMorgan ($684 million)

Apple ($656 million)

General Electric ($630 million)

Johnson and Johnson ($620 million)

AT&T ($610 million)

IBM ($600 million)

Procter & Gamble ($597 million)

Bank of America ($565 million)

Yet what is most interesting is determining whether the fund was part of this ridiculous concept of money on the sidelines, which is climing the "wall of worry," or whatever the retarded phrase of the day that is used by The First In Subversive Propaganda Worldwide. And the answer is no. The New York Fund, one of the biggest and dumbest money managers (and if the AG is correct, one of the allegedly most corrupt ones too) out there, did not participate in the "rally." In fact, if one excludes the 7 million shares of BAC added which nets out the sale that John Paulson accomplised over the quarter (gee, wonder who top ticked that one), the fund actually was a net seller of 308,251 shares, or $10 million worth of actual value disposed in Q3. So yes, hedge funds and quants managed to run the market up on no volume in Q3, without actual active participation by the dumb money whales.

The chart below demonstrate the net change in Q3 for the top 30 holdings by the fund.

Zero Hedge will next analyze the portfolios of the other idiot money out there (the people who actually buy or sell based on a Goldman recommendation change) - the Fidelity's and the Putnam's of the world. We are fairly convinced the results there will be a mirror image of what the New York Common fund demonstrate: nobody has been taking advantage of this rally, which is as hollow as the computer boxes which have traded the market to stratospheric valuations.