Even elite money managers are struggling to pick winners in this year’s vicious market.
Q2 2022 hedge fund letters, conferences and more
The top stocks favored by hedge funds are doing even worse than all the major benchmarks this year, based on an ETF tracking the cohort. The $151 million Goldman Sachs Hedge Industry VIP ETF (ticker GVIP) has tumbled 23%, falling more than funds that track the S&P 500, the tech-heavy Nasdaq 100, the Dow Jones Industrial Average and the Russell 2000.
| Fund | Ticker | YTD Price Loss |
|---|---|---|
| Goldman Sachs Hedge Industry VIP ETF | GVIP | 23% |
| Invesco QQQ Trust Series 1 | QQQ | 20% |
| iShares Russell 2000 ETF | IWM | 13% |
| SPDR S&P 500 ETF Trust | SPY | 13% |
| SPDR Dow Jones Industrial Average ETF Trust | DIA | 9% |
GVIP tracks an index that consists of the 50 stocks that appear most frequently among the top ten holdings of US hedge funds. The index, based on 13F filings of hedge fund managers, is rebalanced quarterly. The stocks are equally weighted at each rebalance.
The ETF has had the greatest exposure to the technology sector throughout this year, according to data compiled by Bloomberg. Some of GVIP’s top tech holdings include Zendesk Inc. and Alibaba Group Holding Ltd. Tech stocks had plummeted at the start of this year as rising prices stoked fears that higher interest rates could weigh on valuations. While technology has somewhat rebounded in the past two months, it is still among the worst-performing sectors this year.
Read the full article here by Elaine Chen, Advisor Perspectives.
