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Mutual fund performance has weakened this year, but hedge fund performance has remained solid, according to Goldman Sachs.
Goldman has published its latest Hedge Fund Trend Monitor and Mutual Fundamentals.
The reports covered 693 hedge funds with $2.8 trillion of gross equity positions($1.8 trillion long, $1.0 billion short) and 554 mutual funds with $3.7 trillion of equity assets.
Strategist David Kostin wrote that “34% of large-cap mutual funds have outperformed their benchmarks YTD, down from 50% in May and below the historical average of 38%.”
“Among styles, large-cap value funds have fared best YTD, with 45% of managers outperforming the Russell 1000 Value (NYSEARCA:IWD) (VONV),” Kostin said. “Large-cap core funds have fared worst, with just 25% of funds outperforming the S&P 500 (NYSEARCA:SPY) (IVV) (VOO).”
“Goldman Sachs Prime Services estimates that US equity fundamental long/short hedge funds have returned +9% YTD, boosted by alpha from popular longs and concentrated shorts.”
There are eight stocks that appear in Goldman’s Hedge Fund VIP List (based on the number of funds where the stock is a top 10 position) and also overweight in mutual funds.
Those shared favorite stocks are:
- CRH (CRH)
- Progressive (PGR)
- Visa (V)
- Fiserv (FI)
- Uber (UBER)
- Workday (WDAY)
- Mastercard (MA)
- UnitedHealth (UNH).
Among the out of favor, four stocks appear on the list of concentrated hedge funds shorts and are underweighted by mutual funds.
Those shunned stocks are:
Opinion is divided about most of the Magnificent 7.
The stocks hedge funds like, but mutual funds are underweight:
- Apple (AAPL)
- Amazon (AMZN)
- Alphabet (GOOGL)
- Meta (META)
- Microsoft (MSFT)
- Nvidia (NVDA)
- Berkshire Hathaway (BRK.B)
- J.P. Morgan (JPM)
- GE (GE)
- Eli Lilly (LLY)
- Broadcom (AVGO)
The stocks are concentrated hedge fund shorts but where mutual funds are overweight: