After a recent tailspin, the equities markets continue to be volatile. In fact, May turned out to be a particularly rough time for hedge fund managers. Even top-notch operators posted loses, like Caxton Global, Fortress and Moore Global. In fact, Paulson & Co. sustained a loss of nearly 6%.

But short sellers did quite well. And yes, you can get a view on their favorite picks through the disclosure of the “short interest” for stocks. Essentially, this shows the current outstanding amounts of short-sale positions.

So what are some the stocks with heavy levels? Let’s take a look:

Frontier Communications (NYSE: FTR): For the past month, the short interest increased from 73.89 million shares to 85.43 million shares. The current level represents about 8.60% of the float.

Frontier operates a network of phone lines and broadband connections, with a primary focus in rural markets. The company has a good track record in cutting costs and streamlining operations. This has been important because of Frontier’s massive acquisition of the landline business from Verizon (NYSE: VZ).

No doubt, Frontier generates strong cash flows. In the first quarter, it came to $626.4 million. Because of this, the company can pay a hefty dividend (the yield is 8.8%).

But there are some big concerns. First of all, the debt load is substantial at $7.9 billion. What’s more, the phone business continues to decline at a scary rate. Unfortunately, the broadband business does not have enough momentum to make up for the short-fall.

Is it any wonder that Verizon wanted to dump the business?

Gamestop (NYSE: GME): The short interest in the stock is 35.73 million shares, which comes to 29.20% of the float.

Gamestop has over 6,600 stores in North America and Europe, which provide video game rentals. The stores have wide selections as well as attractive services, such as its trade-in program.

All in all, the financials look good. Comparable store sales are at about 5.3%. For example, the company’s PowerUp Rewards program is getting good traction.

So with all the positives, why are short sellers targeting the stock? One reason is that console manufactures are leveraging the Internet, which could displace Gamestop.

At the same time, the traditional video game is undergoing major changes. With the emergence of the iPhone and Facebook, more people are playing social games. Of course, there is nothing to rent. Interestingly enough, the top player in the market — Zynga — has a higher value than Electronic Arts (NASDAQ: ERTS).

As seen with other retail concepts, like Tower Records and Blockbuster Video, a technology disruption can have serious consequences for shareholders.

American International Group (NYSE: AIG): The total short interest is 36.68 million shares or 26% of the float.

Of course, AIG had to get a massive bailout during the financial crisis of 2008. But since then, the company has done a good job with cutting costs and selling-off assets.

Yet AIG will likely need to increase reserves because of the recent disaster in Japan, asbestos liabilities and tornadoes in the US.

But the biggest drag is likely to be the overhang on the stock. Consider that the Treasury still owns 77% of the outstanding shares of AIG. And over the next few years, millions of them will come onto the market, putting pressure on the stock price.

Tom Taulli’s latest book is “All About Short Selling” and he has an upcoming book called “All About Commodities.” You can find him at Twitter account @ttaulli. He does not own a position in any of the stocks named here.