Hedge funds’ most-loved stocks have nearly doubled the S & P 500 ‘s return this year due to the continuous strength in Big Tech, according to Goldman Sachs. The Wall Street bank analyzed the holdings of 722 hedge funds with $2.6 trillion of gross equity positions at the start of 2024, based on regulatory filings. It then compiled a basket of the most popular long positions, dubbed Goldman’s Hedge Fund VIP basket, comprising 50 stocks that most frequently appear among the largest 10 holdings of hedge funds. The group of hedge funds’ favorite stocks has gained 9% this year through Feb. 14, outperforming the S & P 500’s 5% return during the same period. The basket also has a long track record of beating the market, outpacing the S & P 500 in 59% of quarters since 2001. The so-called Magnificent Seven, excluding Tesla, occupied six of the seven top stocks on the list, according to Goldman. Amazon and Microsoft , which climbed 10% and 6% this year, respectively, were the two most popular stocks among fundamental hedge funds as of the end of 2023. Meta Platforms , Alphabet and Nvidia were also well-loved among hedge funds last quarter. Meta has rallied 30% this year — on top of the 194% surge from 2023 — after its profit tripled and the announcement of its first-ever dividend. Outside of tech, oil and gas company Pioneer Natural Resources was also on the list, as well as credit card company Visa and ride-hailing giant Uber .
