Goldman Sachs: These are the 17 ‘smart money’ stocks most loved by hedge funds right now — a group that’s historically beaten the S&P 500

goldman-sachs:-these-are-the-17-‘smart-money’-stocks-most-loved-by-hedge-funds-right-now-—-a-group-that’s-historically-beaten-the-s&p-500

US Markets Loading… H M S

Premium

JOHANNES EISELE/AFP via Getty Images This story is available exclusively to Insider subscribers. Become an Insider and start reading now. Hedge funds are pivoting back to growth stocks, according to a note from Goldman Sachs. Below is a list of the stocks most frequently found in the top 10 holdings of hedge funds right now. It’s a group that’s outperformed its benchmark on a quarterly basis over the past 20 years. For much of this year, it’s been a downward spiral for the stock market. But the tides may be turning.

Funds are gradually pivoting back to market-leading growth stocks by moving into the information technology and consumer discretionary sectors while reducing exposure to energy and materials, according to an August 23 note from Goldman Sachs. 

While the average equity hedge fund has lost 9% year-to-date, July saw a 4% gain as fortunes shifted slightly, Goldman found. 

Investors seeking to follow this so-called smart money can take a peek at the stocks that appear most frequently in the top 10 holdings of hedge fund portfolios. This is exactly what the Goldman Sachs Hedge Fund VIP List (GSTHHVIP) tracks. It compiles a basket of the top long positions held by fundamentally-driven hedge funds. It’s heavily weighted in the information technology sector, which makes up 33.8% of the fund, followed by communications services at 15.7%, and then health care at 12.2%.

This year has been a tough ride for growth stocks and it has reflected on the list’s performance. Year-to-date, the GSTHHVIP has underperformed the S&P 500’s broader market exposure.

However, in the long run, it has outperformed the index in 59% of quarters since 2001, signaling strong performance if you can ride out the volatility.

Of the 50 stocks in the basket, below is a list of the top 17 held by hedge funds that have 10 to 200 distinct US equity positions as of June 30, 2022. 

2. Microsoft Corp.

Markets Insider Ticker: MSFT

Sub-sector:Systems Software

Market cap ($ bn): $2,170

Funds owning stock: 139

Funds with stock as top 10 holding: 84

3. Alphabet Inc.

Markets Insider Ticker: GOOGL

Sub-sector: Interactive Media & Services

Market cap ($ bn): $1,478

Funds owning stock: 103

Funds with stock as top 10 holding: 55

5. Visa Inc.

Markets Insider Ticker: V

Sub-sector: Data Processing & Outsourced Services

Market cap ($ bn): $354

Funds owning stock: 82

Funds with stock as top 10 holding: 37

6. Apple Inc.

Markets Insider Ticker: AAPL

Sub-sector:Technology Hardware Storage & Peripherals

Market cap ($ bn): $2,819

Funds owning stock: 59

Funds with stock as top 10 holding: 36

7. Uber Technologies

Markets Insider Ticker: UBER

Sub-sector: Trucking

Market cap ($ bn): $59

Funds owning stock: 65

Funds with stock as top 10 holding: 34

8. Mastercard Inc.

Markets Insider Ticker: MA

Sub-sector: Data Processing & Outsourced Services

Market cap ($ bn): $345

Funds owning stock: 69

Funds with stock as top 10 holding: 25

9. Berkshire Hathaway

Markets Insider Ticker: BRK.B

Sub-sector: Multi-Sector Holdings

Market cap ($ bn): $671

Funds owning stock: 46

Funds with stock as top 10 holding: 22

10. ServiceNow Inc

Markets Insider Ticker: NOW

Sub-sector: Systems Software

Market cap ($ bn): $671

Funds owning stock: 51

Funds with stock as top 10 holding: 19

11. T-Mobile US Inc.

Markets Insider Ticker: TMUS

Sub-sector: Wireless Telecommunication Services

Market cap ($ bn): $184

Funds owning stock: 46

Funds with stock as top 10 holding: 19

12. UnitedHealth Group

Markets Insider Ticker: UNH

Sub-sector: Managed Health Care

Market cap ($ bn): $512

Funds owning stock: 41

Funds with stock as top 10 holding: 18

13. Fiserv Inc.

Markets Insider Ticker: FISV

Sub-sector:Data Processing & Outsourced Services

Market cap ($ bn): $71

Funds owning stock: 32

Funds with stock as top 10 holding: 17

14. Salesforce Inc.

Markets Insider Ticker: CRM

Sub-sector: Application Software

Market cap ($ bn): $187

Funds owning stock: 60

Funds with stock as top 10 holding: 17

15. Biohaven Pharmaceutical Holding Company Ltd

Markets Insider Ticker: BHVN

Sub-sector:Biotechnology

Market cap ($ bn): $11

Funds owning stock: 28

Funds with stock as top 10 holding: 16

16. Booking Holdings

Markets Insider Ticker: BKNG

Sub-sector: Hotels Resorts & Cruise Lines

Market cap ($ bn): $87

Funds owning stock: 38

Funds with stock as top 10 holding: 16

17. CrowdStrike Holdings

Markets Insider Ticker: CRWD

Sub-sector: Systems Software

Market cap ($ bn): $45

Funds owning stock: 30

Funds with stock as top 10 holding: 16

Deal icon An icon in the shape of a lightning bolt. Keep reading

Receive a selection of our best stories daily based on your reading preferences.

Loading Something is loading.

More: Investing Features Goldman Sach Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Deal icon An icon in the shape of a lightning bolt. For you


Leave a comment

Your email address will not be published. Required fields are marked *