Goldman Sachs Says Hedge Funds and Mutual Funds Both Love 5 Top Stocks

"Mutual funds and hedge funds agree on most sectors, with Health Care and Industrials ranking among the most overweight sectors for both groups. The exceptions to this consensus are Financials, where mutual funds are overweight, but hedge funds are underweight, and Consumer Discretionary, where hedge funds are overweight but mutual funds are underweight."

"Each year, the Goldman Sachs research team releases its Hedge Fund Trend Monitor and Mutual Fundamentals reports, which analyze $9 trillion of equity positions at the start of the first quarter of 2026. The Goldman Sachs analysis covers 1,029 hedge funds with $4.4 trillion of gross equity positions ($2.9 trillion long, $1.5 trillion short) and 524 large-cap active mutual funds with a combined $4.1 trillion in equity assets."

Goldman Sachs, founded in 1869 and ranked as the world's second-largest investment bank by revenue, maintains a leading research department serving institutional and high-net-worth clients. The firm's annual Hedge Fund Trend Monitor and Mutual Fundamentals reports examine $9 trillion in equity positions, covering 1,029 hedge funds with $4.4 trillion in gross equity positions and 524 large-cap active mutual funds with $4.1 trillion in equity assets. Analysis reveals that mutual funds and hedge funds largely agree on sector positioning, with Health Care and Industrials ranking as overweight for both groups. Notable divergences exist in Financials, where mutual funds are overweight while hedge funds are underweight, and Consumer Discretionary, where the positioning reverses. Recent portfolio rotations show both groups adding to Energy and Consumer Discretionary positions while reducing Communication Services holdings.

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