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Pro Analysis

Hedge funds finally beating the market, here's how

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York.
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Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York.

Railing against hedge funds for their poor performance is all the rage on Wall Street these days, but the industry is finally making a comeback with market-beating returns in August, according to the latest data from hedge fund research firm Preqin.

August "represents the sixth consecutive month of positive performance for hedge funds, the longest period of monthly gains seen since the industry recorded 12 consecutive months of gains in June 2012-May 2013," Preqin stated Wednesday.

The firm revealed its "All-Strategies Hedge Fund" benchmark returned 0.97 percent in August compared with the S&P 500's roughly flat performance. Overall hedge fund industry return is now up 4.7 percent this year versus the market's 6.2 percent at the end of August.

CNBC PRO found the top stocks hedge funds owned for their market-beating performance using research from Goldman Sachs and Symmetric, a hedge fund tracking firm.