Recession threat a priority however fund portfolio holdings in step with mushy touchdown expectations By Investing.com

By Sam Boughedda 

Goldman Sachs analysts mentioned in a be aware to purchasers on Monday that the agency’s evaluation of $5 trillion of hedge fund and mutual fund holdings “present extra similarities than variations.”

The agency just lately printed stories that analyzed 786 hedge funds with $2.3T of gross fairness positions and 548 mutual funds with $2.5T of AUM at first of 4Q 2022.

“Macro hedge funds have carried out nicely YTD (+8%) whereas in a falling market fairness hedge funds and large-cap core mutual funds each returned -11%. Mutual fund overweights have outpaced in style hedge fund longs (-4% vs. -27%),” mentioned the analysts.

The analysts added that funds disagree on Huge Tech, though there are 12 “‘shared favorites’: CEG, DHR, FISV, HUM, MA, NOW, SCHW, UBER, UNH, V, WDAY, WFC.”

“Each fairness mutual funds and lengthy/quick hedge funds have modestly outpaced the -13% YTD return of the S&P 500. 55% of large-cap mutual funds have overwhelmed their respective benchmarks this yr, which is the very best hit charge of outperformance since 2007 and considerably above the long-term common hit charge (34%). The common mutual fund portfolio has outperformed the Russell 1000 by 105 bp YTD, highlighting the energy of their inventory choosing in 2022. Whereas the common macro hedge fund has returned +8% YTD, the everyday fairness lengthy/quick hedge fund has returned -11%,” the analysts continued.

They went on to state that whereas recession threat stays a priority for all investor classes, their evaluation of mutual fund and hedge fund portfolio holdings reveals that “thematic, issue, and sector exposures are in step with expectations for a mushy touchdown.”