Wall Street’s fast money has a new favorite bet.
Microsoft (MSFT) has replaced Amazon (AMZN) are the top 10 most popular stocks among hedge funds, strategists at Goldman Sachs led by Ben Snider said in a recent note.
The investment bank’s hedge fund trend tracker, which analyzes the positions of 786 companies in the industry, shows that 82 companies have Microsoft among their top 10 long positions; Amazon has appeared on the top picks 79 times.
The other names found most frequently in the top 10 picks of hedge funds are Alphabet (GOOGLE), Uber (UBER) and Netflix (NFLX). Uber and Netflix ranked among the top 5 most popular hedge funds for the first time.
Large-cap tech giants continue to dominate the list of top hedge funds most popular holdings even as Big Tech has seen a severe drop this year amid interest rates. rate increase.
Federal Reserve officials have worked to contain inflation by raising interest rates sharply in 2022, with the central bank announcing a cumulative 3.75% increase in the benchmark interest rate range through now this year. Higher interest rates have dampened growth prospects and challenged valuations in the tech sector.
Meta Platform (META), is down 66 percent this year and is among the worst performing stocks in the S&P 500, falling out of the top five among the top hedge funds for the first time since 2014.
Goldman’s hedge fund “VIP” basket includes the 50 most frequently occurring stocks among the top 10 of the underlying hedge funds, with about $1.5 trillion worth of long positions. USD. Goldman Sachs has compiled the latest report from its 13F filing as of Nov.
Goldman’s data shows the basket has outperformed the S&P 500 in 58% of the quarters since 2001, with an average 34 basis point excess return in winning quarters.
This year, however, “VIP” listings are down nearly 30 percent year-to-date compared to the S&P 500’s 16 percent drop. Underperformance has led Goldman’s basket to its second worst year in two decades. which analysts say is tracking the group’s activities.
Goldman noted that hedge funds have generally performed well in recent months despite underperforming the most popular long positions.
Bank VIPs have lagged since early 2021, but outperformed the market in Q3 2022 amid broader stock market recovery; However, in recent weeks, Goldman analysts have noted that the basket’s underperformance has returned.
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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