Rising home prices and conservative borrowing have today's homeowners sitting on a record amount of potential cash. Today's mortgage holders saw their home equity increase by...Real Estateread more
The Mac Pro is the only major Apple computer to be assembled in the United States. Most of Apple's products, including the iPhone, are assembled in China and are facing tariff...Technologyread more
Toys R Us' bankruptcy caused a 7% surge in sales for the toy industry during the first half of 2018 as parents stocked up, then sales fell 2% as manufacturers experienced...Retailread more
Stocks have been grinding sideways, but technical analysts say once they breakout, the move to the upside could be powerful.Market Insiderread more
SoftBank wants to push Neumann out of the CEO role ahead of the IPO.Technologyread more
After an unexpected loss of subscribers and increased competition in the streaming war, shares of Netflix erased all of its 46% gain for the year at its peak and officially...Marketsread more
The UK's Civil Aviation Authority said Thomas Cook had now ceased trading and the regulator would work with the government to bring the more than 150,000 British customers...Europe Marketsread more
"Apple is not only going to make money on their own service they're also going to make money selling everybody else's services, and so will Amazon," consultant Michael J. Wolf...Technologyread more
CNBC's Jim Cramer calls on investors to be wary of the slew of hyped-up unicorn companies going public this year and encourages the focus to be on deliverable earnings.Investingread more
The RNC paid $166,390 in August to the office of Mintz Levin for "legal and compliance services," according to a disclosure filing.Politicsread more
Trump has called Chairman Jerome Powell "clueless" and Fed officials "boneheads."The Fedread more
While most of the stock market is in turbulence amid the trade chaos, Goldman Sachs has a portfolio that's crushing the market, returning more than 16% year to date.
Many of the bank's portfolios created exclusively for its clients are underperforming during heightened market uncertainties, including one tracking hedge funds' top holdings and one with large-cap mutual funds overweights, but the stocks that overlap those two baskets have delivered a stellar performance this year.
"The underperformance of popular positions today following President [Donald] Trump's announcement of tariffs on imports from Mexico underscores investor concern about crowded positions," Goldman's chief U.S. equity strategist, David Kostin, said in the note. "The 'wisdom of the crowds' can be a positive signal for subsequent stock returns."
The overlapping stocks are 12 companies most popular with both hedge funds and mutual funds. They include Adobe, Citigroup, Google parent Alphabet, PayPal, UnitedHealth, Mastercard, ServiceNow and Visa, Goldman said. They have outperformed the S&P 500 by 6.1 percentage points so far in 2019.
While a few stocks on Goldman's list are weighed down by the escalated trade tensions, Visa, UnitedHealth, PayPal and Mastercard all held up well in May.
The S&P 500, which has returned about 10% year to date, lost more than 6% in May alone, amid the tit-for-tat threats in the ongoing U.S.-China trade war. The sell-off deepened after the U.S. announced last week a 5% surprise tariff on all Mexican imports.
Stocks popular among mutual funds and hedge funds, the so-called shared favorites, also have a long track record of beating the market, the bank noted. They have generated an annualized return of 19% since 2013, higher than the S&P 500's 13% gain over the same period.
Goldman covers 880 hedge funds with $2.1 trillion of gross equity positions and 521 large-cap mutual funds with $2.1 trillion of equity holdings.