These stocks are present in Goldman’s “Hedge Fund VIP” list as well as its “Mutual Fund Overweight basket.”
- According to a CNBC report, Goldman Sachs identified these six stocks after analyzing $8 trillion in equity positions at the beginning of the fourth quarter.
- The firm noted that these “shared favorites” of mutual funds and hedge funds have collectively outperformed the S&P 500 index by 10 basis points year-to-date.
Goldman Sachs reportedly identified six stocks on Friday as the “shared favorites” of both mutual funds and hedge funds. However, big names such as Alphabet Inc. (GOOG, GOOGL), Nvidia Corp. (NVDA), and Apple Inc. (AAPL) are not on the list.
According to a CNBC report, Goldman Sachs identified these six stocks after analyzing $8 trillion in equity positions at the beginning of the fourth quarter (Q4), based on regulatory filings. The names include CRH Plc. (CRH), Spotify Technology SA (SPOT), Mastercard Inc. (MA), Talen Energy Corp. (TLN), Visa Inc. (V), and Vertiv Holdings Co. (VRT).
The report added that these stocks are on Goldman’s “Hedge Fund VIP” list and its “Mutual Fund Overweight basket.”
Six ‘Shared Favorites’
Goldman Sachs noted that these “shared favorites” of mutual funds and hedge funds have collectively outperformed the S&P 500 index by 10 basis points year-to-date. The S&P 500 index has gained 16.35% year to date.
Here’s how they’ve performed on a year-to-date basis:
CRH Plc. (CRH): The firm’s shares are up 30% YTD. The company is a provider of building materials solutions.
Earlier this month, CRH reported mixed third-quarter (Q3) results. The firm reported earnings per share (EPS) of $2.21 on revenue of $11.07 billion, compared to an estimated EPS of $2.2 on revenue of $11.14 billion, according to Stocktwits data.
Spotify Technology SA (SPOT): The company’s shares are up 34% YTD. Spotify was in the news recently after The Financial Times reported that the company plans to raise subscription prices in the U.S. in the first quarter of next year.
Mastercard Inc. (MA): The firm’s shares are up 5% YTD. The company announced the Mastercard Access Pass on Tuesday, allowing its issuers and partners to provide tailored experiences and exclusive perks to consumers.
Talen Energy Corp. (TLN): The company’s shares are up 97% YTD. Talen Energy on Tuesday announced the acquisition of the Freedom Generating Station in Pennsylvania and the Guernsey Power Station in Ohio, expanding its portfolio with 2.9 gigawatts of energy.
Visa Inc. (V): The firm’s shares are up 5% YTD. Visa announced a partnership with Aquanow on Wednesday, expanding its stablecoin settlement capabilities across the Central and Eastern Europe, Middle East, and Africa region (CEMEA).
Vertiv Holdings Co. (VRT): The company’s shares are up 49% YTD. On Monday, the firm announced the launch of its new Vertiv Training Academy and Technology Excellence Center at its Integrated Business Services (IBS) center in India.
What About Mag 7?
While mutual funds and hedge funds shared a common ground when it came to the six stocks above, their positions stood in contrast when it came to the ‘Magnificent 7’ stocks.
Goldman Sachs noted that hedge funds are bullish on all but one ‘Mag 7’ stocks — the exception being Tesla Inc. (TSLA). They find a place in the firm’s “Hedge Fund VIP” list.
However, these “Mag 7” stocks are part of the “Mutual Fund Underweight basket,” suggesting a less optimistic outlook from long-only mutual fund managers.
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