These are the top 10 stocks most loved by hedge funds

Getty Images / Chris Hondros
  • In 13-F filings earlier this month, hedge funds disclosed what stocks they bought or sold in the third quarter.
  • Goldman Sachs analysed the filings of 833 hedge funds to compile a “VIP list” of the stocks that appear most often in the top-10 holdings of fundamentally driven hedge funds.
  • Here’s the list of the top-10 most-loved equities from Goldman’s Hedge Fund Trend Monitor report.
  • Read more on Business Insider.

In the first weeks of November, hedge funds revealed which stocks they bought and sold during the third quarter.

Goldman Sachs analysed the 13-F disclosure filings as of November 14 of 833 hedge funds with $US2.1 trillion in gross equity positions for its Hedge Fund Trend Monitor report released Monday.

From that analysis, Goldman compiled its “Hedge Fund VIP list,” which contains the stocks that appear most often in the top-10 holdings of fundamentally driven hedge funds.

The list is a tool for investors seeking to “follow the smart money,” according to the report. It’s been a strong historical performer, Goldman said, but this year has been challenging for the list. Since the beginning of the year, it has lagged the S&P 500 index by about 4 percentage points, Goldman said.

But things are picking up – since the start of the fourth quarter, the VIP list has outperformed the S&P 500 by 2 percentage points, according to the report.

Here are the top 10 stocks that hedge funds are loving, ranked in increasing order of how many hedge funds hold the equity:


10. Salesforce

ReutersThe company logo for Salesforce.com, Inc. is displayed on a screen on on the floor of the NYSE in New York

Ticker: CRM

Industry: Application software

Year-to-date return: 19%

Number of funds with stock as top 10 holding: 34

Source: Goldman Sachs


9. Mastercard

ReutersMastercard Inc. credit cards are displayed in this picture illustration

Ticker: MA

Industry: Data processing & outsources services

Year-to-date return: 50%

Number of funds with stock as top 10 holding: 34

Source: Goldman Sachs


8. Fidelity National Information Services

ReutersTraders work on the floor at the NYSE in New York

Ticker: FIS

Industry: Data processing & outsources services

Year-to-date return: 34%

Number of funds with stock as top 10 holding: 35

Source: Goldman Sachs


7. Visa

Associated PressFILE – This Aug. 11, 2019 file photo shows Visa credit cards in New Orleans. A credit card’s fine print can more than strain your eyes; your wallet can also feel the pain if you don’t understand the terms. (AP Photo/Jenny Kane, File)

Ticker: V

Industry: Data processing & outsources services

Year-to-date return: 37%

Number of funds with stock as top 10 holding: 38

Source: Goldman Sachs


6. Allergan

ReutersA trader works at the post that trades Parsley Energy Inc. and Allergan Plc., on the floor of the NYSE

Ticker: AGN

Industry: Pharmaceuticals

Year-to-date return: 40%

Number of funds with stock as top 10 holding: 47

Source: Goldman Sachs


5. Alphabet

Justin Sullivan/Getty ImagesGoogle CEO Sundar Pichai.

Ticker: GOOGL

Industry: Interactive media & services

Year-to-date return: 28%

Number of funds with stock as top 10 holding: 57

Source: Goldman Sachs


4. Alibaba

Reuters

Ticker: BABA

Industry: Internet & direct marketing retail

Year-to-date return: 35%

Number of funds with stock as top 10 holding: 70

Source: Goldman Sachs


3. Facebook

ReutersFILE PHOTO: An attendee takes a photograph of a sign during Facebook Inc’s F8 developers conference in San Jose

Ticker: FB

Industry: Interactive media & services

Year-to-date return: 49%

Number of funds with stock as top 10 holding: 75

Source: Goldman Sachs


2. Amazon

ReutersFILE PHOTO: The logo of Amazon is seen at the company logistics centre in Boves

Ticker: AMZN

Industry: Internet & direct marketing retail

Year-to-date return: 16%

Number of funds with stock as top 10 holding: 78

Source: Goldman Sachs


1. Microsoft

ReutersThe Microsoft logo is shown on the Microsoft Theatre at the E3 2017 Electronic Entertainment Expo in Los Angeles

Ticker: MSFT

Industry: Systems software

Year-to-date return: 49%

Number of funds with stock as top 10 holding: 79

Source: Goldman Sachs

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