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Goldman Sachs analysts identified the 20 most concentrated S&P 500 (SP500) stocks within hedge fund ownership.
In a Hedge Fund Trend Monitor report, analysts said that owning the 20 most concentrated stocks has outperformed the S&P 500 (SP500) in 58% of quarters since 2001, with an average quarterly excess return of 130 basis points each quarter.
Analysts define concentration as the share of market cap owned in aggregate by hedge funds. Here the stocks are mostly mid-cap, at the lower end of the S&P 500 (SP500) cap distribution.
Year-to-date, this basket has had a performance of 8%, the average stock percentage owned by hedge funds is 14%, and the average equity cap is $18B. The basket also had a turnover of 15% in the second quarter.
These are the stocks with the most concentration by hedge funds, with holdings as of June 30.
- Incyte Corp. (INCY) - % of equity cap owned by HFs: 25%
- Bath & Body Works (BBWI) - % of equity cap owned by HFs: 25%
- Hess Corp. (HES) - % of equity cap owned by HFs: 17%
- Ralph Lauren Corp. (RL) - % of equity cap owned by HFs: 16%
- Expedia Group Inc. (EXPE) - % of equity cap owned by HFs: 16%
- Catalent Inc. (CTLT) - % of equity cap owned by HFs: 15%
- Western Digital (WDC) - % of equity cap owned by HFs: 13%
- Dollar Tree Inc. (DLTR) - % of equity cap owned by HFs: 13%
- Caesars Entertainment (CZR) - % of equity cap owned by HFs: 12%
- Invesco Ltd. (IVZ) - % of equity cap owned by HFs: 12%
- Vistra Corp. (VST) - % of equity cap owned by HFs: 12%
- GoDaddy Inc. (GDDY) - % of equity cap owned by HFs: 12%
- Universal Health Svc. (UHS) - % of equity cap owned by HFs: 12%
- Evergy Inc. (EVRG) - % of equity cap owned by HFs: 12%
- Synchrony Financial (SYF) - % of equity cap owned by HFs: 10%
- Solventum Corp. (SOLV) - % of equity cap owned by HFs: 10%
- Lamb Weston Holdings (LW) - % of equity cap owned by HFs: 10%
- TransDigm Group (TDG) - % of equity cap owned by HFs: 10%
- Juniper Networks (JNPR) - % of equity cap owned by HFs: 10%
- Qorvo Inc. (QRVO) - % of equity cap owned by HFs: 10%