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GOLDMAN SACHS: These are the 12 stocks most loved by hedge funds

Aug 24, 2019, 02:21 IST

Reuters / Brendan McDermid

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  • Hedge funds disclosed their most recent holdings in public filings earlier this month, providing a window into which companies some of the world's most successful money managers are betting on.
  • Goldman Sachs put together a list of the stocks that appear most frequently in the top 10 largest holdings within hedge fund portfolios.
  • The "Hedge Fund VIP List" features the top long positions of fundamentally-driven hedge funds, excluding firms that use quantitative strategies or attempt to mirror private equity investments.
  • Here are 12 companies most loved by hedge funds in the second quarter.
  • Visit the Markets Insider homepage for more stories.

Earlier this month, hedge funds revealed which public companies they bought and sold during the second quarter.

Hedge funds are required to disclose stakes in public companies four times a year, following the end of each quarter. Goldman Sach's created a list of the top stocks these money managers purchased in the second quarter based publicly-available 13F filings.

Goldman's "Hedge Fund VIP List" includes the top long positions of fundamentally-driven hedge funds. The firm's analysis was limited to funds with between ten and 200 equity positions in effort to exclude funds that apply quantitative strategies or attempt to mirror private equity investments.

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When hedge funds show interest in a particular stock, its often a good sign, according to Goldman's analysis.

"Changes in popularity with hedge fund investors can be strong signals for future stock performance," the firm said in the report.

Here the 12 stocks most loved by hedge funds in the second quarter, ranked in increasing order of how many have them in their top 10 holdings:

12. Allergan

Ticker: AGN

Industry: Pharmaceuticals

Year-to-date return: 20%

Number of funds with stock as top 10 holding: 27

Source: Goldman Sachs

11. Comcast

Ticker: CMCSA

Industry: Cable & Satellite

Year-to-date return: 28%

Number of funds with stock as top 10 holding: 29

Source: Goldman Sachs

10. Mastercard

Ticker: MA

Industry: Data processing & outsourced services

Year-to-date return: 46%

Number of funds with stock as top 10 holding: 33

Source: Goldman Sachs

9. Visa

Ticker: V

Industry: Data Processing & Outsourced Services

Year-to-date return: 36%

Number of funds with stock as top 10 holding: 36

Source: Goldman Sachs

8. Netflix

Ticker: NFLX

Industry: Movies & Entertainment

Year-to-date return: 13%

Number of funds with stock as top 10 holding: 39

Source: Goldman Sachs

7. Disney

Ticker: DIS

Industry: Movies & Entertainment

Year-to-date return: 24%

Number of funds with stock as top 10 holding: 41

Source: Goldman Sachs

6. Celgene

Ticker: CELG

Industry: Biotechnology

Year-to-date return: 48%

Number of funds with stock as top 10 holding: 44

Source: Goldman Sachs

5. Alphabet

Ticker: GOOGL

Industry: Interactive Media & Services

Year-to-date return: 13%

Number of funds with stock as top 10 holding: 46

Source: Goldman Sachs

4. Alibaba

Ticker: BABA

Industry: Internet & Direct Marketing Retail

Year-to-date return: 27%

Number of funds with stock as top 10 holding: 54

Source: Goldman Sachs

3. Microsoft

Ticker: MSFT

Industry: Systems Software

Year-to-date return: 36%

Number of funds with stock as top 10 holding: 70

Source: Goldman Sachs

2. Facebook

Ticker: FB

Industry: Interactive media & services

Year-to-date return: 40%

Number of funds with stock as top 10 holding: 71

Source: Goldman Sachs

1. Amazon

Ticker: AMZN

Industry: Internet & Direct Marketing Retail

Year-to-date return: 19%

Number of funds with stock as top 10 holding: 95

Source: Goldman Sachs

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