The Six Shared Favorite Stocks Among Mutual And Hedge Funds Aren’t Among The Mag Seven

Hedge funds and mutual funds have been known to disagree on things, but when they do agree, their shared favorite stocks tend to outperform the markets.

According to Goldman Sachs’ recent report that compares mutual fund and hedge fund positioning in U.S. equities, the six shared favorite stocks aren’t even close to the Magnificent Seven. They’re not even all technology stocks.

Hedge funds versus mutual funds

The majority of mutual funds are lagging their benchmarks, with less than one-third of large-cap equity mutual funds outperforming year to date, versus the average of 37% since 2007. As a result of this underperformance, mutual funds have boosted their exposure to equities in recent months, slashing their cash allocations to a record low of 1.2% of assets.