Here are hedge funds' favorite stocks right now, which are beating the market big time

Published Wed, May 20 20202:02 PM EDTUpdated Wed, May 20 20202:36 PM EDT

(This story is for CNBC Pro subscribers only.) Hedge funds are supposed to thrive in volatile markets, and they didn't disappoint so far this year amid the unprecedented coronavirus crisis that wreaked havoc across the economy. In fact, the most owned 20 stocks across 342 hedge funds have been beating the market with a 15% average return in 2020, versus an 8% loss for the S & P 500, according to an analysis from RBC Capital Markets based on the latest quarterly regulatory filings. Here's a breakdown of those favorite stocks in the hedge fund world, some of which are winners in the health care sector. "The Hot Dogs, our list of the most popular S & P 500 stocks in hedge funds, have outperformed strongly in 2020," Lori Calvasina, RBC's head of U.S. equity strategy, said in a note. "The vast majority of these names outperformed during the pandemic related drawdown that occurred in the S & P 500 from mid February to late March." Hedge funds collectively grew bullish on a handful of health care names — Merck & Co , AbbVie , UnitedHealth and Johnson & Johnson and Biogen . The health care sector has been one of the best-performing pockets of the market, boosted by increasing bets on biotech companies working on a coronavirus vaccine or treatment. The bets have paid handsomely so far this year while the broader market suffered a historic downturn. AbbVie gained 10% this month alone, bringing its 2020 return to about 2.2%. Biogen rose about 5% this year, while UnitedHealth and Johnson & Johnson were about flat on the year. Irish pharmaceutical company Allergan, third popular name among hedge funds, was acquired by AbbVie this month. Meanwhile, Amazon and Microsoft remained the top two holdings based on the dollar value owned by hedge funds at the end of the first quarter. The tech duo have been leading the market comeback from the coronavirus sell-off as investors grew bullish on their resilient internet businesses. Shares of Amazon and Microsoft have soared 34% and 16%, respectively, this year. Both stocks experienced large increases in the number of hedge fund investors in the first quarter, according to RBC. The so-called FANG names were prominent in hedge funds' top holdings. Investors have piled into Netflix as a stay-at-home play, pushing the stock up a whopping 38% this year. Other market leaders — Facebook , Alphabet and Apple — were also popular bets for hedge funds.

In this picture taken on April 29, 2020, an engineer works at the Quality Control Laboratory on an experimental vaccine for the COVID-19 coronavirus at the Sinovac Biotech facilities in Beijing.

Nicolas Asfouri | AFP | Getty Images

(This story is for CNBC Pro subscribers only.)

Hedge funds are supposed to thrive in volatile markets, and they didn't disappoint so far this year amid the unprecedented coronavirus crisis that wreaked havoc across the economy.

In fact, the most owned 20 stocks across 342 hedge funds have been beating the market with a 15% average return in 2020, versus an 8% loss for the S&P 500, according to an analysis from RBC Capital Markets based on the latest quarterly regulatory filings.

Here's a breakdown of those favorite stocks in the hedge fund world, some of which are winners in the health care sector.