Goldman Sachs Says Buy These 9 Stocks Hedge Funds Are Long On
Goldman Sachs analyzed the holdings of hedge funds and mutual funds to find these 9 stocks that should continue to surge, according to Business Insider.
Goldman Sachs’ quarterly Hedge Fund Trend Monitor and Mutual Fundamentals reports can give investors clarity in the uncertain market environment. The report analyzed the top holdings of 815 hedge funds and 572 mutual funds.
The report included a list of favorite stocks that are rated overweight by mutual funds and positioned long in hedge funds. Year-to-date, the stocks on the list have outperformed the market this year.
"Shared favorites underperformed during the bear market in 1Q (-37% vs. -34% for the S&P 500), but have outperformed by 3 pp during the past five months (+55% vs. +52%) as investors have added length in the rebounding market," David Kostin, chief US equity strategist at Goldman Sachs, said.
He continued: "The strategy has a strong historical track record of outperformance: An equal-weighted list of shared favorites has generated an annualized return of 19% since 2013 (vs. 14% for S&P 500), and outpaced the S&P 500 in 65% of months."
Alexion Pharmaceuticals (ALXN)