GOLDMAN SACHS: These are the 12 stocks most loved by both hedge funds and mutual funds right now

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  • 2022 was a tough year for passive stock indices like the S&P 500.
  • Many active funds outperformed the index, a shift that may continue in 2023.
  • In a recent note, Goldman Sachs listed 12 stocks most loved by hedge funds and mutual funds.

2022 was a brutal year for passive investing. 

Indices like the S&P 500 and Nasdaq 100 closed the year down 20% and 33%, respectively. 

Active funds, meanwhile, outperformed, a phenomenon which has become more uncommon alongside the longest bull market run in history occurring from 2008 to 2020. 

In a market environment of continued uncertainty surrounding inflation, Fed policy, and the direction of the economy, active funds may very well outperform their passive counterparts again in 2023. Many top Wall Street strategists, in fact, see the S&P 500 delivering minimal or zero gains this year.

In a stock picker’s environment, it’s good to know where top stock pickers are leaning into. In a recent note, Goldman Sachs’ Chief US Equity Strategist David Kostin listed stock sectors favored most by hedge funds and mutual funds, including: industrials, healthcare, materials, and energy.

Kostin also listed 12 individual stocks that matter most to both hedge funds and mutual funds — names that are held by multiple hedge funds with a high weighting, and which are also held in an overweight capacity by multiple mutual funds — indicating a high level of consensus around them. 

The names are listed below in no particular order.