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Hedge fund managers had a busy second quarter picking stocks to ride the market's epic rebound, and it's paying off. Goldman Sachs' basket tracking hedge funds' favorite positions has more than tripled the S&P 500's return this year.
The so-called hedge fund "very important position" basket contains the 50 stocks that appear most often on the top 10 holdings of fundamentally-driven hedge funds, according to the firm. Goldman analyzed 815 hedge funds with $2 trillion of gross equity positions, based on second-quarter regulatory filings.
Its new analysis showed 15 new stocks were added to the hedge fund community's most-loved positions in the second quarter. Here are the highlights.
The hedge fund VIP basket, created for investors to follow the smart money, has soared 18% year to date, versus the S&P 500's near 5% gain, Goldman said. The portfolio also has a long track record of beating the market — It outperformed the S&P 500 in 61% of quarters since 2001 with an average quarterly excess return of 0.6%.