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Hedge funds love these 20 stocks, and they are crushing the market, Goldman says

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Fabrizio Bensch | Retuers

Hedge funds are struggling overall this year, but the stocks most-owned by the smart money is still outperforming the market soundly, according to Goldman Sachs' latest "Hedge Fund Trend Monitor" report.

"The strategy of buying the 20 most concentrated stocks has a strong track record over 15 years," Goldman Sachs' Ben Snider wrote in the note to clients Thursday. "The [Goldman hedge fund high concentration] basket is on pace to post its fifth straight year of leading the S&P 500 by more than 400 bp."

Goldman defines "concentration" as the percentage of a stock's market capitalization owned "in aggregate" by hedge funds. The firm found the strategy of buying the top 20 stocks with the highest concentration of hedge fund ownership beat the by 10 percentage points a year on average since 2001. The basket is outperforming the market by 11 percentage points this year.

Here are the 20 stocks in Goldman's hedge fund high concentration basket.