Goldman Sachs: Here Are 50 Stocks Most Loved by Hedge Funds


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Google is a top hedge-fund holding


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Goldman Sachs ‘GS +0.24% quarterly analysis of hedge-fund holdings shows the industry continues to struggle keeping pace with the broad market.

Hedge funds are flat for the year while the S&P 500 is up 2%, according to Goldman Sachs, which analyzed performance from 777 hedge funds with $1.9 trillion under management. A drop in correlation, the tendency of stocks to move in the same direction, and tight dispersion–a measure of how much stock returns differ within individual sectors–have weighed on hedge-fund performance.

“Performance headwinds from stock-picking were compounded by poor market timing,” Goldman wrote to clients, as many hedge funds cut their exposure to media and Internet stocks in early April, just as many of those beaten-down stocks were starting to rebound.

Nevertheless, the individual stocks that hedge-fund managers buy and sell attracts a tremendous amount of attention from retail investors. Mom-and-pop investors like to see where the so-called “smart money” is flowing as a factor in their own investing decisions. Some follow the crowd, while others pull aCostanza and do the opposite.

As the chart below shows, Google Inc.GOOGL +1.37% topped the list as the most widely held stock by hedge funds, followed by Apple Inc.AAPL -0.09% and General Motors Co.GM +1.24% AIG AIG +0.25% and Time Warner Cable TWC -0.54% round out the top five.

Without further ado, here’s a look at the 50 stocks with the largest number of hedge-fund investors, courtesy of Goldman Sachs:

View table here:

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