Goldman Sachs recently analyzed hedge and mutual funds’ investments in the first quarter and outlined where investors might want to take a page from their playbook. The report highlighted that most funds failed to capitalize on the tech rally over the last few weeks and are lagging behind the market this year. However, the biggest brains on Wall Street are still worth paying attention to, and Goldman Sachs pointed out exactly where fund managers moved their money earlier this year. According to Goldman, an equal-weighted list of fund managers’ shared favorites has generated an annualized return of 14% vs 13% for the S&P 500.
Below are the nine stocks that fund managers from both groups agree are worth buying:
– Alphabet, Inc.
– Amazon.com, Inc.
– American Express Co.
– Cisco Systems, Inc.
– JPMorgan Chase & Co.
– Procter & Gamble Co.
– Schwab (Charles) Corporation
– ServiceNow, Inc.
– Visa, Inc.
During the first quarter, both hedge funds and mutual funds cut their exposure to the financials sector as the banking crisis dominated headlines and investing decisions. However, mutual funds slashed their investments in the sector, while hedge funds are underweight on it. Additionally, both hedge funds and mutual funds increased net tilts in healthcare, consumer staples, and utilities, while cutting exposure to the tech sector, consumer discretionary, and communication services.
Frequently Asked Questions (FAQs) Related to the Above News
What did Goldman Sachs analyze?
Goldman Sachs analyzed hedge and mutual funds' investments in the first quarter.
What did the report highlight about the funds' performance?
The report highlighted that most funds failed to capitalize on the tech rally over the last few weeks and are lagging behind the market this year.
Did Goldman Sachs identify any stocks worth buying?
Yes, Goldman Sachs identified nine stocks that fund managers from both hedge and mutual funds agree are worth buying.
What are the nine stocks worth buying according to Goldman Sachs?
The nine stocks worth buying, according to Goldman Sachs, are Alphabet, Inc., Amazon.com, Inc., American Express Co., Cisco Systems, Inc., JPMorgan Chase & Co., Procter & Gamble Co., Schwab (Charles) Corporation, ServiceNow, Inc., and Visa, Inc.
Did hedge and mutual funds show any difference in their investment decisions in the first quarter?
Yes, both hedge funds and mutual funds cut their exposure to the financials sector, but mutual funds slashed their investments in the sector while hedge funds are underweight on it. Additionally, both hedge funds and mutual funds increased net tilts in healthcare, consumer staples, and utilities, while cutting exposure to the tech sector, consumer discretionary, and communication services.
Did fund managers' shared favorites generate a higher annualized return than the S&P 500?
Yes, according to Goldman Sachs, an equal-weighted list of fund managers' shared favorites generated an annualized return of 14% vs 13% for the S&P 500.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
