Goldman Sachs says to buy these 11 ‘shared favorite’ stocks loved by both hedge funds and their mutual fund counterparts

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  • Goldman Sachs analyzed holdings of 566 different mutual funds and 807 hedge funds.
  • They found 11 stocks that are the “shared favorites” of the two fund groups.
  • Info Tech is the sub-sector most frequently listed in the group of stocks.
  • See more stories on Insider’s business page.

Hedge funds and mutual funds are two different animals. 

Hedge funds use risky tactics in an attempt to generate higher returns for their investors. Mutual funds, meanwhile, tend to stick to safer options, taking a more conservative approach. 

Their respective positions and strategies can therefore vary. But they also sometimes overlap.

Goldman Sachs equity strategists have identified one such commonality among the two groups of investors: this year, they’ve both rotated sharply to value stocks amid the shake-out in pricier stocks that are expected to grow their earnings quickly. 

Mutual funds are outperforming their benchmarks at an above-average rate of 56% this year, thanks in part to their record exposure to value stocks, the strategists found.

Hedge funds also swung to value stocks and away from growth, although they still increased their holdings of some of the mega-cap growth stocks including some of the FAAMGs. 

Analyzing holdings of 566 different mutual funds and 807 hedge funds, Goldman Sachs equity strategists — led by Chief US Equity Strategist David Kostin — identified 11 stocks that are the “shared favorites” of the two fund groups.

The stocks tend to be Info Tech- and Financials-oriented. All of them are overweight in mutual funds by at least 6 basis points, and are top 10 positions in at least 12 different hedge funds. 

The stocks are listed below in alphabetical order. 

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