Hedge funds play buy-and-hold, and lose: Report

A trader works the floor of the NYSE.
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Hedge fund managers are riding their stock picks as long as possible, but overall returns continue to lag the market, according to a new report from Goldman Sachs.

The bank's 783 hedge fund clients turned over—sold a position before holding it for a year—just 28 percent of their portfolios, according to the report. The 12-year turnover average is 35 percent.

The turnover of funds' largest holdings also fell to an all-time low of 15 percent. And the average fund holds 63 percent of long assets in just 10 top positions,

In other words, top hedge fund managers believe their best ideas will continue to gain as the bull market hits new highs.