GOLDMAN SACHS: The stocks most loved by hedge funds have smashed the market this year. Here are 15 stocks those investors flooded into last quarter.

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Hedge funds love mega-cap tech, and their FANMAG fandom isn’t going anywhere. But some new ideas are on the rise for the world’s biggest investors.

Delving into the holdings of leading funds, Goldman Sachs strategist Ben Snider writes that their top positions haven’t changed much. In fact, the five most widely owned stocks have been the same for the last eight quarters, although their order has shifted at times.

Those leaders are Amazon, Microsoft, Facebook, Alibaba, and Alphabet. But elsewhere, hedge funds are adjusting their positioning to add more industrial stocks and banks, and trim their holdings in tech and healthcare. The picture that emerges starts to look a little more like a bet on a recovering economy.

“From an implementation standpoint, the Hedge Fund VIP list represents a tool for investors seeking to follow the smart money,'” Snider wrote in a note to clients. Goldman calls these widely-owned companies the “stocks that matter most.”

He notes that Goldman’s list of the 50 most popular hedge fund long positions has returned 18% so far, compared to about 6% for the S&P 500. And being a new favorite comes with its own perks.

“The Russell 3000 stocks with the largest increase in hedge fund popularity during 2Q have returned 22% in the last three months vs. 13% for the median stock,” he wrote.

Whether or not those stocks join the tech giants as world-conquering portfolio staples, it’s worth watching as signs of a Wall Street consensus start to develop around them.

For now, the biggest holdings of those funds are practically written in stone, as they haven’t changed in a significant way in two years — practically an eternity on Wall Street. The 15 stocks that follow are the newest entrants in Snider’s list of hedge fund favorites, meaning they broke into that list of 50 hedge fund favorites in the second quarter.

The stocks are ranked from lowest to highest based on how many fundamentally driven hedge funds disclosed each stock as one of their top 10 holdings. Snider and his team picked only from funds that have more than 10 and fewer than 200 positions, which leaves a group of stocks those funds have a high degree of confidence in.

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15. Alexion Pharmaceuticals

Alexion




Markets Insider



Ticker: ALXN

Sector: Healthcare

Market cap: $22.1 billion

Year to date performance: -7.1%

Funds with the stock as a top ten holding: 12

Source: Goldman Sachs

14. Copart

Copart




Markets Insider



Ticker: CPRT

Sector: Industrials

Market cap: $23.4 billion

Year to date performance: +10.7%

Funds with the stock as a top ten holding: 12

Source: Goldman Sachs

13. Danaher

Danaher




Markets Insider



Ticker: DHR

Sector: Information technology

Market cap: $23.2 billion

Year to date performance: +35.4%

Funds with the stock as a top ten holding: 12

Source: Goldman Sachs

12. Advanced Micro Devices

AMD




Markets Insider



Ticker: AMD

Sector: Information technology

Market cap: $94.5 billion

Year to date performance: +82.8%

Funds with the stock as a top ten holding: 12

Source: Goldman Sachs

11. Horizon Therapeutics

Horizon Therapeutics




Markets Insider



Ticker: HZNP

Sector: Healthcare

Market cap: $15.4 billion

Year to date performance: +108.1%

Funds with the stock as a top ten holding: 12

Source: Goldman Sachs

10. CrowdStrike Holdings

CrowdStrike




Markets Insider



Ticker: CRWD

Sector: Information technology

Market cap: $23.2 billion

Year to date performance: +124.6%

Funds with the stock as a top ten holding: 12

Source: Goldman Sachs

9. JPMorgan Chase

JPMorgan




Markets Insider



Ticker: JPM

Sector: Financials

Market cap: $298.1 billion

Year to date performance: -30.2%

Funds with the stock as a top ten holding: 13

Source: Goldman Sachs

8. AbbVie

AbbVie




Markets Insider



Ticker: ABBV

Sector: Healthcare

Market cap: $168.3 billion

Year to date performance: +7.1%

Funds with the stock as a top ten holding: 13

Source: Goldman Sachs

7. Pinterest

Pinterest




Markets Insider



Ticker: PINS

Sector: Communication services

Market cap: 20.6%

Year to date performance: +83.4%

Funds with the stock as a top ten holding: 13

Source: Goldman Sachs

6. Caesars Entertainment

Caesars




Markets Insider



Ticker: CZR

Sector: Consumer discretionary

Market cap: $7 billion

Year to date performance: -25.1%

Funds with the stock as a top ten holding: 13

Source: Goldman Sachs

5. Coupa Software

Coupa Software




Markets Insider



Ticker: COUP

Sector: Information technology

Market cap: $20.1 billion

Year to date performance: +105.8%

Funds with the stock as a top ten holding: 13

Source: Goldman Sachs

4. Lowe’s

Lowe's




Markets Insider



Ticker: LOW

Sector: Consumer discretionary

Market cap: $118.6 billion

Year to date performance: +35.0%

Funds with the stock as a top ten holding: 14

Source: Goldman Sachs

3. Qualcomm

Qualcomm




Markets Insider



Ticker: QCOM

Sector: Information technology

Market cap: $124.3 billion

Year to date performance: +28.1%

Funds with the stock as a top ten holding: 15

Source: Goldman Sachs

2. Twitter

Twitter




Markets Insider



Ticker: TWTR

Sector: Communication services

Market cap: $30.5 billion

Year to date performance: +22.5%

Funds with the stock as a top ten holding: 16

Source: Goldman Sachs

1. TransDigm Group

TransDigm




Markets Insider



Ticker: TDG

Sector: Industrials

Market cap: $26 billion

Year to date performance: -14.4%

Funds with the stock as a top ten holding: 18

Source: Goldman Sachs

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