The Top 5 Growth Stocks That Hedge Funds Are Buying Now
According to a new report from Goldman Sachs (NYSE: GS ), hedge funds and mutual funds are starting to rotate back into growth stocks from value stocks. These investors are steadily building up their positions in industries like information technology and consumer discretionary. Sub-sectors within these industries include auto, semiconductors and e-commerce. In a client note, top U.S. equity strategist David Kostin added: Mutual funds moved 66 bp away from Value, but still rank in the 79th percentile vs. the past 10 years. Hedge funds added 74 bp of exposure to Growth and cut length in Value by 30 bp. However, hedge funds are still less tilted to Growth than usual (508 bp vs. 728 bp average). The report also shows that mutual funds’ exposure to growth stocks are their highest levels since mid-2018. In addition, many mutual funds are increasing their exposure to mega-cap tech names, such as Tesla (NASDAQ: TSLA ), and Alphabet (NASDAQ: GOOG , NASDAQ: GOOGL ). 5 Growth Stocks That Hedge Funds Are Buying Now Growth stocks have experienced a rough year thus far.
The Top 5 Growth Stocks That Hedge Funds Are Buying Now
According to a new report from Goldman Sachs (NYSE: GS ), hedge funds and mutual funds are starting to rotate back into growth stocks from value stocks. These investors are steadily building up their positions in industries like information technology and consumer discretionary. Sub-sectors within these industries include auto, semiconductors and e-commerce. In a client note, top U.S. equity strategist David Kostin added: Mutual funds moved 66 bp away from Value, but still rank in the 79th percentile vs. the past 10 years. Hedge funds added 74 bp of exposure to Growth and cut length in Value by 30 bp. However, hedge funds are still less tilted to Growth than usual (508 bp vs. 728 bp average). The report also shows that mutual funds’ exposure to growth stocks are their highest levels since mid-2018. In addition, many mutual funds are increasing their exposure to mega-cap tech names, such as Tesla (NASDAQ: TSLA ), and Alphabet (NASDAQ: GOOG , NASDAQ: GOOGL ). 5 Growth Stocks That Hedge Funds Are Buying Now Growth stocks have experienced a rough year thus far.