Analysis by Goldman Sachs has revealed that a period of record poor performance has prompted hedge fund managers to rotate out of their favourite growth stocks and into cyclical companies, according to a report by CNBC.
Goldmans Sachs analysed the holdings of 799 hedge funds with a combined $2.4 trillion of gross equity positions at the start of Q2 2022 and then compiled a basket of the 50 most popular long position stocks that appear among the funds’ 10 largest holdings.
The so-called “Hedge Fund VIP basket” has trailed the S&P 500 by 28 percentage points since early 2021, marking its worst stretch on record, according to Goldman, with managers choosing to cut their exposure as a result.
