Hedge Funds Love These 10 Stocks

Money

Despite the stock market making all-time highs on a seemingly daily basis, hedge funds are not having a particular great year. In fact, the majority are significantly underperforming the broad market. However, the most popular holdings among hedge funds are performing quite well.

Through the first 10 months of the year, the average hedge fund has returned only 6 percent, according to the latest Hedge Fund Trend Monitor from Goldman Sachs. In comparison, the S&P 500 increased 25 percent over the same period. The report analyzes 783 hedge funds with $1.1 trillion in gross equity assets.

While short positions have weighed on hedge funds this year, the majority of long positions are outperforming the market. “Stock pickers have received a boost from their long book, as the most important long positions have outperformed the S&P 500 by nearly 500 basis points so far in 2013,” explains Goldman Sachs.

Here’s a look at the 10 stocks held by the largest number of hedge funds.

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10. Anadarko Petroleum (NYSE:APC)

Number of Hedge Funds Owning Stock: 105

YTD: 19.5 percent

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9. Facebook (NASDAQ:FB)

Number of Hedge Funds Owning Stock: 116

YTD: 76.6 percent

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8. Bank of America (NYSE:BAC)

Number of Hedge Funds Owning Stock: 121

YTD: 36.3 percent

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7. Microsoft (NASDAQ:MSFT)

Number of Hedge Funds Owning Stock: 123

YTD: 42.8 percent

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6. JPMorgan Chase (NYSE:JPM)

Number of Hedge Funds Owning Stock: 124

YTD: 30.1 percent

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5. Citigroup (NYSE:C)

Number of Hedge Funds Owning Stock: 139

YTD: 33.8 percent

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4. General Motors (NYSE:GM)

Number of Hedge Funds Owning Stock: 154

YTD: 34.3 percent

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3. American International Group (NYSE:AIG)

Number of Hedge Funds Owning Stock: 163

YTD: 40.9 percent

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2. Google (NASDAQ:GOOG)

Number of Hedge Funds Owning Stock: 165

YTD: 49.8 percent

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1. Apple (NASDAQ:AAPL)

Number of Hedge Funds Owning Stock: 184

YTD: 4.5 percent

Interestingly, Apple is the only stock besides Anadarko Petroleum among the top 10 that is underperforming the S&P 500. However, shares have jumped 44 percent since hitting a 52-week low of $385 on April 19, 2013. Well-known hedge fund managers, such as David Einhorn and Carl Icahn, are also bullish on Apple.

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Follow Eric on Twitter @Mr_Eric_WSCS

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