Goldman has a market-topping hedge fund basket for investors seeking to 'follow the smart money'

A man walks past the Wall Street Charging Bull in New York, the United States, March 24, 2020.

Wang Ying | Xinhua News Agency | Getty Images

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The unprecedented volatility amid the coronavirus pandemic created a opportunity for hedge funds to shine after years of mediocre performance. Goldman Sachs has a basket tracking hedge funds’ most-loved positions and it’s crushing the market this year.

The so-called hedge fund “very important position” basket contains 50 stocks that appear most often on the top 10 holdings of fundamentally-driven hedge funds, according to the firm. Goldman analyzed the first-quarter regulatory filings from 822 hedge funds with $1.8 trillion of gross equity positions.

“From an implementation standpoint, the Hedge Fund VIP list represents a tool for investors seeking to ‘follow the smart money’ based on 13-F filings,” Goldman’s equity strategist Ben Snider said in a note.

The basket has reaped a total return of 9% this year, versus the S&P 500‘s more than 8% loss. Here’s what’s in it.