Common hedge fund stock picks outperform, says Goldman


Maybe hedge funds are smarter than the rest of the market.

According to recently released research by Goldman Sachs, stocks that hedge funds commonly bought in last year’s fourth quarter, including American Tower (wireless telecom), Trane (building products) and Teradata (computer hardware), outperformed the broader U.S. equities market, while stocks that hedge funds commonly sold underperformed. Those trends have continued into this year.

In Goldman Sachs’ Hedge Fund Trend Monitor, dated February 20, the firm reports that stocks most commonly purchased in the fourth quarter by large, fundamental long/short equity funds gained an equal-weighted average of 5% for the