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Goldman reports show mutual funds and hedge funds split on megacaps

Many MFs have limits on how much of their assets can be in a single stock to ensure diversification

Goldman Sachs
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A view of the Goldman Sachs stall on the floor of the New York Stock Exchange in New York (Photo: Reuters)

Bloomberg
The biggest US listed companies are now so large, they’ve become major underweights in mutual-fund (MF) portfolios. In contrast, they remain among the most popular picks for hedge funds, said an analysis by Goldman.
 
Many MFs have limits on how much of their assets can be in a single stock to ensure diversification. As a result, Apple, Microsoft, and Amazon.com are the three most-underweight stocks in large-cap funds, according to Goldman strategists including Ben Snider, David Kostin, and Arjun Menon. But those same firms are on the firm’s Hedge Fund VIP list of most-popular names, according to a separate report.

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First Published: Aug 22 2020 | 12:44 AM IST

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