These are the top 10 stocks most loved by hedge funds

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Getty Images / Chris Hondros
  • In 13-F filings earlier this month, hedge funds disclosed what stocks they bought or sold in the third quarter.
  • Goldman Sachs analyzed the filings of 833 hedge funds to compile a “VIP list” of the stocks that appear most often in the top-10 holdings of fundamentally driven hedge funds.
  • Here’s the list of the top-10 most-loved equities from Goldman’s Hedge Fund Trend Monitor report.
  • Read more on Business Insider.

In the first weeks of November, hedge funds revealed which stocks they bought and sold during the third quarter.

Goldman Sachs analyzed the 13-F disclosure filings as of November 14 of 833 hedge funds with $2.1 trillion in gross equity positions for its Hedge Fund Trend Monitor report released Monday.

From that analysis, Goldman compiled its “Hedge Fund VIP list,” which contains the stocks that appear most often in the top-10 holdings of fundamentally driven hedge funds.

The list is a tool for investors seeking to “follow the smart money,” according to the report. It’s been a strong historical performer, Goldman said, but this year has been challenging for the list. Since the beginning of the year, it has lagged the S&P 500 index by about 4 percentage points, Goldman said.

But things are picking up – since the start of the fourth quarter, the VIP list has outperformed the S&P 500 by 2 percentage points, according to the report.

Here are the top 10 stocks that hedge funds are loving, ranked in increasing order of how many hedge funds hold the equity:


10. Salesforce

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The company logo for Salesforce.com, Inc. is displayed on a screen on on the floor of the NYSE in New York
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Reuters

Ticker: CRM

Industry: Application software

Year-to-date return: 19%

Number of funds with stock as top 10 holding: 34

Source: Goldman Sachs


9. Mastercard

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Mastercard Inc. credit cards are displayed in this picture illustration
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Reuters

Ticker: MA

Industry: Data processing & outsources services

Year-to-date return: 50%

Number of funds with stock as top 10 holding: 34

Source: Goldman Sachs


8. Fidelity National Information Services

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Traders work on the floor at the NYSE in New York
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Reuters

Ticker: FIS

Industry: Data processing & outsources services

Year-to-date return: 34%

Number of funds with stock as top 10 holding: 35

Source: Goldman Sachs


7. Visa

Ticker: V

Industry: Data processing & outsources services

Year-to-date return: 37%

Number of funds with stock as top 10 holding: 38

Source: Goldman Sachs


6. Allergan

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A trader works at the post that trades Parsley Energy Inc. and Allergan Plc., on the floor of the NYSE
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Reuters

Ticker: AGN

Industry: Pharmaceuticals

Year-to-date return: 40%

Number of funds with stock as top 10 holding: 47

Source: Goldman Sachs


5. Alphabet

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Google CEO Sundar Pichai.
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Justin Sullivan/Getty Images

Ticker: GOOGL

Industry: Interactive media & services

Year-to-date return: 28%

Number of funds with stock as top 10 holding: 57

Source: Goldman Sachs


4. Alibaba

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Reuters

Ticker: BABA

Industry: Internet & direct marketing retail

Year-to-date return: 35%

Number of funds with stock as top 10 holding: 70

Source: Goldman Sachs


3. Facebook

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FILE PHOTO: An attendee takes a photograph of a sign during Facebook Inc’s F8 developers conference in San Jose
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Reuters

Ticker: FB

Industry: Interactive media & services

Year-to-date return: 49%

Number of funds with stock as top 10 holding: 75

Source: Goldman Sachs


2. Amazon

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FILE PHOTO: The logo of Amazon is seen at the company logistics centre in Boves
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Reuters

Ticker: AMZN

Industry: Internet & direct marketing retail

Year-to-date return: 16%

Number of funds with stock as top 10 holding: 78

Source: Goldman Sachs


1. Microsoft

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The Microsoft logo is shown on the Microsoft Theatre at the E3 2017 Electronic Entertainment Expo in Los Angeles
source
Reuters

Ticker: MSFT

Industry: Systems software

Year-to-date return: 49%

Number of funds with stock as top 10 holding: 79

Source: Goldman Sachs