According to a recent study by Goldman Sachs, a group of six stocks emerged as the 'shared favorites' among hedge funds and mutual funds in their second-quarter filings. These stocks—Boeing, Capital One Financial, Mastercard, SpaceX, Thermo Fisher Scientific, and Visa—have collectively returned 29% year-to-date, outperforming the S&P 500 by 13 percentage points.
Notably, Capital One, SpaceX, and Thermo Fisher Scientific are new entrants to this group, reflecting a growing interest in financial stocks. Hedge funds and mutual funds have increased their exposure to financials, marking only the third instance in Goldman’s historical data where both fund types are overweight in this sector.
Hedge funds raised their net tilt toward financials by over three percentage points in Q2, achieving their largest position since before the Global Financial Crisis, while mutual funds also increased their financial holdings to their highest level since at least 2012.
The 'shared favorites' portfolio, which is updated quarterly based on SEC filings, has a history of outperforming the market despite higher volatility, delivering an annualized return of 17% since 2013. The median price-to-earnings ratio for these stocks is 25 times, compared to 19 times for the average S&P 500 stock.
This analysis covered approximately $10 trillion in equity positions, encompassing 991 hedge funds and 504 large-cap mutual funds