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Ten stocks that matter the most to hedge funds, according to Goldman’s VIP portfolio

Hedge funds held onto their favorite stocks last quarter during the market turmoil as managers rode out the volatility, according to Goldman Sachs. The Wall Street firm analyzed the holdings of 786 hedge funds with a combined $2.3 trillion of gross equity positions at the start of the fourth quarter, based on regulatory filings. It then compiled a basket of the most popular long positions, dubbed Goldman’s “Hedge Fund VIP basket,” consisting of the 50 stocks that most frequently appear among all hedge funds’ 10 largest positions. “As the Fed attempts to navigate the U.S. economy toward a soft landing, hedge fund portfolios largely remain in a holding pattern,” Ben Snider, Goldman’s equity strategist, said in a note. “Quarterly position turnover dropped to a new low during 3Q.” Goldman said the “Hedge Fund VIP” list represents a tool for investors seeking to “follow the smart money” based on 13-F filings. The basket underperformed the S & P 500 year to date with a 29% loss. However, it has outperformed the S & P 500 in 58% of all quarters since 2001, Goldman said. Microsoft was the most popular stock, with 82 hedge funds owning it at the end of the third quarter, according to Goldman. The Xbox maker has fallen 27% this year, underperforming the broader market. In its most recent quarterly results, Microsoft surpassed expectations on the top and bottom lines, but cloud revenue was lower than expected. The company’s quarterly guidance fell short of expectations as well. Megacap names Amazon , Netflix , Google-parent Alphabet , Apple and Meta Platforms also appeared on the hedge fund VIP list. Uber was also widely-held by hedge funds last quarter. Earlier this month, the ride-sharing company reported a third-quarter loss but beat analysts’ estimates for revenue. Uber also strong fourth-quarter guidance Credit card processors Visa and Mastercard were also among hedge funds’ favorite stocks in the third quarter, as was Paypal , according to Goldman.

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