Hedge funds are struggling overall this year, but the stocks most-owned by the smart money is still outperforming the market soundly, according to Goldman Sachs' latest "Hedge Fund Trend Monitor" report.
"The strategy of buying the 20 most concentrated stocks has a strong track record over 15 years," Goldman Sachs' Ben Snider wrote in the note to clients Thursday. "The [Goldman hedge fund high concentration] basket is on pace to post its fifth straight year of leading the S&P 500 by more than 400 bp."
Goldman defines "concentration" as the percentage of a stock's market capitalization owned "in aggregate" by hedge funds. The firm found the strategy of buying the top 20 stocks with the highest concentration of hedge fund ownership beat the S&P 500 by 10 percentage points a year on average since 2001. The basket is outperforming the market by 11 percentage points this year.
Here are the 20 stocks in Goldman's hedge fund high concentration basket.
Relax Hedge funds love these 20 stocks, and they are crushing the market, Goldman says stories
Ray Dalio's Bridgewater Associates requires a deep thinker who takes an academic approach to learning.
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Shares of payment technology company Square ticked higher after a well-known hedge fund manager reported a higher stake.
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The Federal Reserve is batting like the Mets in their notoriously awful inaugural season, Art Cashin said.
Traders divining the oil market's next move are watching a key level on West Texas Intermediate futures that could determine whether $40 or $50 is next in the cards.
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Andrew Adams, a technical analyst at Raymond James, cited quite an obscure theory in his "Charts of the Week" report sent to the firm's clients Wednesday morning.
The last four times stocks hit an August high in an election year, the victor won in a landslide, Art Cashin notes.
Corporate insiders are paring back their holdings and taking profits as U.S. equities trade at record levels, according to Argus Research.