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Aug. 24, 2022, 9:45 a.m. EDT

These 10 stocks matter the most to hedge funds right now

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By Anviksha Patel

Hedge funds this year have struggled, mostly on their big bets on the technology sector, though of late their performance has improved.

An average gain of 4% for equity hedge funds in the last two months has helped pull their performance against the broader market to roughly even for the year, according to an analysis from Goldman Sachs.

A team of analysts looked at 795 hedge funds’ long positions at the start of the third quarter based on filings as of Aug. 15 and published its 50-strong VIP list of “stocks that matter most” that appear most frequently among the top 10 long holdings within hedge fund portfolios.

Company Ticker Sub-sector Number of funds with stock as top 10 holding Total return year-to-date, %
Amazon.com Inc /zigman2/quotes/210331248/composite AMZN Internet & Direct Marketing Retail 92 -15
Microsoft Corp. /zigman2/quotes/207732364/composite MSFT Software 84 -13
Alphabet Inc. /zigman2/quotes/202490156/composite GOOGL Interactive Media & Services 55 -17
Meta Platforms Inc. /zigman2/quotes/205064656/composite META Interactive Media & Services 51 -48
Visa Inc. /zigman2/quotes/203660239/composite V Data Processing & Outsourced Services 37 0
Apple Inc. /zigman2/quotes/202934861/composite AAPL Technology Hardware Storage & Peripherals 36 -2
Uber Technologies /zigman2/quotes/211348248/composite UBER Trucking 34 -28
Mastercard Inc. /zigman2/quotes/207581792/composite MA Data Processing & Outsourced Services 25 0
Berkshire Hathaway /zigman2/quotes/200060694/composite BRK.B Multi-Sector Holdings 22 +2
ServiceNow Inc. /zigman2/quotes/202729495/composite NOW Systems Software 19 -25
Source: Solactive, FactSet, data compiled by Goldman Sachs Global Investment Research

Hedge fund of late have cut leverage and shifted back toward growth stocks, buying the likes of Apple and Amazon. The switch came from hedge funds slashing their positions in the energy and materials sector.

NVIDIA topped Goldman’s list of the largest short positions as of the end of July, a prescient call given the company’s profit warning in early August.

Related : Cathie Wood’s ARK Invest cuts its stake in the graphics chipmaker ahead of its results.

Here are the top 10 stocks with the largest short positions:

Company Ticker Sub-sector Total return year-to-date, % Value of short interest as of Jul. 29, $ billion
NVIDIA Corp. /zigman2/quotes/200467500/composite NVDA Semiconductors -36 6.1
Amgen Inc. /zigman2/quotes/209157011/composite AMGN Biotechnology 14 4.3
Occidental Petroleum /zigman2/quotes/207018272/composite OXY Integrated Oil & Gas 125 4
Exxon Mobil Corp. /zigman2/quotes/204455864/composite XOM Integrated Oil & Gas 59 3.5
Chevron Corp. /zigman2/quotes/205871374/composite CVX Integrated Oil & Gas 39 3.1
Pfizer Inc. /zigman2/quotes/202877789/composite PFE Pharmaceuticals -16 3
International Business Machines /zigman2/quotes/203856914/composite IBM IT Consulting 8 3
Texas Instruments /zigman2/quotes/202237907/composite TXN Semiconductors -3 2.9
S&P Global Inc. /zigman2/quotes/208931849/composite SPGI Financial Exchanges & Data -18 2.9
KLA Corp /zigman2/quotes/209248041/composite KLAC Semiconductor equipment -10 2.9
Source: FactSet, data compiled by Goldman Sachs Global Investment Research

Companies that see large increase in hedge fund holdings, Goldman Sachs says, can be strong signals for future stock performance.

Rising Stars, they call them, have typically ended up outperforming its peers during the quarters following their rise in popularity.

Rising Stars in the report include tech infrastructure company Switch Inc, which saw 23 hedge funds pour in during the second quarter, and energy firm Chevron Corporation /zigman2/quotes/205871374/composite CVX -2.58% , which had 20 more hedge funds own the stock.

/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 88.25
-2.76 -3.03%
Volume: 75.50M
Dec. 6, 2022 4:00p
P/E Ratio
81.04
Dividend Yield
N/A
Market Cap
$928.45 billion
Rev. per Employee
$312,308
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/zigman2/quotes/207732364/composite
US : U.S.: Nasdaq
$ 245.12
-5.08 -2.03%
Volume: 22.46M
Dec. 6, 2022 4:00p
P/E Ratio
26.41
Dividend Yield
1.11%
Market Cap
$1865.11 billion
Rev. per Employee
$918,891
loading...
/zigman2/quotes/202490156/composite
US : U.S.: Nasdaq
$ 96.98
-2.50 -2.51%
Volume: 24.91M
Dec. 6, 2022 4:00p
P/E Ratio
19.52
Dividend Yield
N/A
Market Cap
$1289.94 billion
Rev. per Employee
$1.79M
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/zigman2/quotes/205064656/composite
US : U.S.: Nasdaq
$ 114.12
-8.31 -6.79%
Volume: 43.69M
Dec. 6, 2022 4:00p
P/E Ratio
10.87
Dividend Yield
N/A
Market Cap
$324.64 billion
Rev. per Employee
$1.64M
loading...
/zigman2/quotes/203660239/composite
US : U.S.: NYSE
$ 209.08
-4.60 -2.15%
Volume: 5.99M
Dec. 6, 2022 4:00p
P/E Ratio
30.53
Dividend Yield
0.86%
Market Cap
$440.54 billion
Rev. per Employee
$1.11M
loading...
/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 142.91
-3.72 -2.54%
Volume: 64.73M
Dec. 6, 2022 4:00p
P/E Ratio
23.42
Dividend Yield
0.64%
Market Cap
$2332.61 billion
Rev. per Employee
$2.40M
loading...
/zigman2/quotes/211348248/composite
US : U.S.: NYSE
$ 26.92
-0.78 -2.82%
Volume: 19.77M
Dec. 6, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$55.25 billion
Rev. per Employee
$991,399
loading...
/zigman2/quotes/207581792/composite
US : U.S.: NYSE
$ 347.53
-8.56 -2.40%
Volume: 2.35M
Dec. 6, 2022 4:00p
P/E Ratio
34.70
Dividend Yield
0.56%
Market Cap
$342.37 billion
Rev. per Employee
$900,833
loading...
/zigman2/quotes/200060694/composite
US : U.S.: NYSE
$ 307.78
-2.79 -0.90%
Volume: 3.88M
Dec. 6, 2022 4:03p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$684.09 billion
Rev. per Employee
$794,952
loading...
/zigman2/quotes/202729495/composite
US : U.S.: NYSE
$ 389.15
-3.11 -0.79%
Volume: 1.47M
Dec. 6, 2022 4:00p
P/E Ratio
393.24
Dividend Yield
N/A
Market Cap
$79.39 billion
Rev. per Employee
$409,869
loading...
/zigman2/quotes/200467500/composite
US : U.S.: Nasdaq
$ 159.87
-6.23 -3.75%
Volume: 35.27M
Dec. 6, 2022 4:00p
P/E Ratio
68.01
Dividend Yield
0.10%
Market Cap
$408.61 billion
Rev. per Employee
$1.27M
loading...
/zigman2/quotes/209157011/composite
US : U.S.: Nasdaq
$ 283.29
-1.62 -0.57%
Volume: 2.48M
Dec. 6, 2022 4:00p
P/E Ratio
22.71
Dividend Yield
2.74%
Market Cap
$152.02 billion
Rev. per Employee
$1.08M
loading...
/zigman2/quotes/207018272/composite
US : U.S.: NYSE
$ 64.14
-2.22 -3.35%
Volume: 13.01M
Dec. 6, 2022 4:00p
P/E Ratio
5.34
Dividend Yield
0.81%
Market Cap
$60.32 billion
Rev. per Employee
$3.06M
loading...
/zigman2/quotes/204455864/composite
US : U.S.: NYSE
$ 103.88
-2.97 -2.78%
Volume: 21.20M
Dec. 6, 2022 4:03p
P/E Ratio
8.46
Dividend Yield
3.50%
Market Cap
$440.04 billion
Rev. per Employee
$6.20M
loading...
/zigman2/quotes/205871374/composite
US : U.S.: NYSE
$ 172.01
-4.55 -2.58%
Volume: 8.76M
Dec. 6, 2022 4:03p
P/E Ratio
9.79
Dividend Yield
3.30%
Market Cap
$341.40 billion
Rev. per Employee
$5.36M
loading...
/zigman2/quotes/202877789/composite
US : U.S.: NYSE
$ 49.71
-1.02 -2.01%
Volume: 21.79M
Dec. 6, 2022 4:04p
P/E Ratio
9.57
Dividend Yield
3.22%
Market Cap
$284.76 billion
Rev. per Employee
$1.26M
loading...
/zigman2/quotes/203856914/composite
US : U.S.: NYSE
$ 147.50
+0.09 +0.06%
Volume: 2.85M
Dec. 6, 2022 4:00p
P/E Ratio
107.53
Dividend Yield
4.47%
Market Cap
$133.28 billion
Rev. per Employee
$196,791
loading...
/zigman2/quotes/202237907/composite
US : U.S.: Nasdaq
$ 174.34
-3.05 -1.72%
Volume: 4.42M
Dec. 6, 2022 4:00p
P/E Ratio
18.26
Dividend Yield
2.85%
Market Cap
$160.99 billion
Rev. per Employee
$651,290
loading...
/zigman2/quotes/208931849/composite
US : U.S.: NYSE
$ 351.69
+1.38 +0.39%
Volume: 1.54M
Dec. 6, 2022 4:00p
P/E Ratio
29.41
Dividend Yield
0.97%
Market Cap
$114.13 billion
Rev. per Employee
$452,123
loading...
/zigman2/quotes/209248041/composite
US : U.S.: Nasdaq
$ 383.24
-5.33 -1.37%
Volume: 1.17M
Dec. 6, 2022 4:00p
P/E Ratio
17.31
Dividend Yield
1.36%
Market Cap
$55.07 billion
Rev. per Employee
$702,065
loading...
/zigman2/quotes/205871374/composite
US : U.S.: NYSE
$ 172.01
-4.55 -2.58%
Volume: 8.76M
Dec. 6, 2022 4:03p
P/E Ratio
9.79
Dividend Yield
3.30%
Market Cap
$341.40 billion
Rev. per Employee
$5.36M
loading...

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