June 4, 2023

  • Hedge funds are turning to growth stocks, according to a report from Goldman Sachs.
  • Below is a list of the most common stocks currently in the top 10 hedge fund holdings.
  • This is a group that has surpassed its benchmark every quarter for the past 20 years.

The stock market has been in a downward spiral for most of the year. But the tide may be turning.

According to an Aug. 23 report from Goldman Sachs, funds are gradually shifting into the information technology and consumer discretionary sectors while reducing exposure to energy and materials, gradually shifting into market-leading growth stocks.

Goldman Sachs found that while equity hedge funds are down an average of 9% so far this year, with a slight change of fortune, they were up 4% in July.

Investors seeking to follow this so-called smart money can take a look at the top 10 stocks that appear in hedge fund portfolios. That’s exactly what the Goldman Sachs Hedge Fund VIP List (GSTHHVIP) tracks. It aggregates a basket of top long positions held by fundamentally driven hedge funds.it is heavy Information technology accounted for 33.8% of the fund, followed by communications services with 15.7% and healthcare with 12.2%.

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

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

Of the 50 stocks in the basket, here is a list of the top 17 stocks held by hedge funds with positions in 10 to 200 different U.S. stocks as of June 30, 2022.

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