When both hedge funds and mutual funds agree on a stock, the shares have a strong track record of beating the market, according to Goldman Sachs.
This year is no exception for these so-called shared favorites from Goldman.
Goldman looked at 815 hedge funds with $2.0 trillion of gross equity positions and 572 large-cap mutual funds with $2.4 trillion of assets under management. The overlapping names between hedge funds and large-cap mutual funds' top holdings have generated an annualized return of 19% since 2013, compared to a 14% gain for the S&P 500, the bank noted.
Here are the shared favorites among those two major investors as of the end of the second quarter.