Goldman Sachs VIPs: 5 Top Hedge Fund Stock Picks

Hedge funds often are referred to as the "smart money," and right now, their stock picks are proving them right.

Goldman Sachs recently released a report revealing that its list of hedge fund VIP stocks are greatly outperforming the market. These are stocks that feature heavily as top-10 holdings based on the latest SEC filings for 848 funds investing a total of $2.3 trillion.

Goldman chief U.S. equity strategist David Kostin says these VIP stocks are "most positively correlated with growth stocks, a strategy that has delivered extraordinary returns during the past 18 months." In 2018 alone, growth stocks are up 4% on average - significantly better than the 2.9% return of the Standard & Poor's 500-stock index.

Kostin says this trend in the category is here to stay: "2019 should continue to benefit growth stocks."

Here are five hedge fund stock picks that are really setting Wall Street ablaze. We used to assess the

You're reading a preview, sign up to read more.

More from Kiplinger

Kiplinger3 min read
2019 Was a Great Year for Investors. How Should You Invest Your Money in 2020?
What a year: 2019 is in the books and many investors experienced strong investment results. The Standard & Poor's 500 Index finished 2019 with gains of over 31% including dividends -- its strongest performance since 2013. With 2020 upon us, some inve
Kiplinger6 min read
4 Ways to Give Your Children and Grandchildren a Financial Head Start
We all want what is best for our children and grandchildren. We want them to develop into kind, capable and responsible people. More than anything, though, we want them to be happy. With study after study showing that money is one of the leading cau
Kiplinger8 min readPolitics
8 Stock Picks Getting Hit by Coronavirus Fears
A new coronavirus, 2019-nCoV, is starting to make its way across the world. The outbreak began at the end of 2019 in Wuhan, China; it has killed several dozen people, infected thousands more and spread to several countries, including the U.S., since