GE was the most popular industrial stock for hedge funds last quarter. Here are 9 firms that likely took a beating after the stock tanked on fraud claims. (GE)

The funds were most likely trying to buy the dip as the stock has shed more than 60% of its market value over the last two years.
It's possible some of these funds sold shares before GE's sell-off on Thursday sparked by Harry Markopolos's fraud accusations, but many likely still held the stock and took a hit.
Here are nine hedge funds that may have gotten clobbered when GE plunged on Thursday.
Visit the Markets Insider homepage for more stories.

General Electric was the favorite industrial-sector pick for hedge funds in the second quarter.

According to regulatory filings, hedge funds added more shares of GE to their portfolios than any other company in the industry during the second quarter. Holdings of GE within hedge fund portfolios rose by 25% during the period, according data compiled by Bloomberg .

The funds most likely saw GE as a bargain at its current price. Through a series of executive shakeups, layoffs, and a major overhaul of its core businesses, GE has lost more than 60% of its market value over the last two years.

Hedge funds are required to disclose investments in public companies four times a year, following the end of each quarter. The recent filings reflect hedge fund's holdings as of June 30, so its possible some firms might have sold shares before GE's stock price tanked on Thursday.

The sell-off which saw GE shares tumble as much as 14% came after the famous Madoff whistleblower Harry Markopolos accused the industrial conglomerate of accounting fraud. He did so in the form of a 175-page report that claimed fraud mostly coming from GE's long-term-care insurance business.

Markets Insider is looking for a panel of millennial investors. If you're active in the markets, CLICK HERE to sign up.

Its likely that many of the hedge funds that stocked up on GE in the second quarter still held their shares when Markopolos's report was published.

The company's stock price recovered on Friday, climbing 6.5% after Larry Culp, GE's chief executive officer, purchased $2 million worth of stock and publicly rebuked Markopolos's claims .

Here's which hedge funds likely took a beating during GE's sell-off on August 15. They're listed in increasing order of how many shares they added to positions: