10 stocks the market's best-performing hedge funds are piling into right now - and 9 more they're buying for the long haul

• Many hedge funds posted their best gains in years during 2019, even as the broader industry struggled to keep up with the stock market's returns.
• The list below features hedge funds that have delivered the best three-year returns on an annualized average basis according to TipRanks.
• It also shows each fund's biggest buy in the fourth quarter and largest overall holding.
• Click here for more BI Prime stories.

The hedge fund industry shrank for a fifth straight year in 2019 as dull returns and hefty fees drove investors away.

Even though many hedge funds posted their best gains in many years, most of them lagged investors who simply tracked an index of US stocks. The $3.3 trillion industry gained 9% according to Bloomberg's Hedge Fund Indices, well below the S&P 500's 29% increase.

Some of the biggest funds that shut their doors to outside investments included Appaloosa Management and Moore Capital. The year also saw the exit of star fund managers like Steve Mandel of Lone Pine Capital.

Despite the industry's struggles, some managers are keeping their clients happy with strong returns, and attracting new investors who are willing to pay up for performance.

The list of US 10 funds below is in ascending order of their three-year annualized average performance according to data compiled by TipRanks.

It also lists each hedge fund's biggest holding and the stock it acquired the most of in the fourth quarter based on recent 13-F filings. Amazon took both spots on one fund's list, bringing the final number of stocks to 19.