Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Goldman Sachs Group, Inc. (GS) vs. American International Group Inc (AIG): Which Do Hedge Funds Like More?

Page 1 of 2

Hedge funds and large money managers usually invest with a focus on the long-term horizon and, therefore, short-lived dips on the charts usually don’t make them change their opinion towards a company. This time it may be different. During the third quarter we observed increased volatility and small-cap stocks underperformed the market. Hedge fund investor letters indicated that they were cutting their overall exposure, closing out some positions and doubling down on others. Let’s take a look at the hedge fund sentiment towards Goldman Sachs Group, Inc. (NYSE:GS) to find out whether it was one of their high conviction long-term ideas.

Goldman Sachs Group, Inc. (NYSE:GS) was in 63 hedge funds’ portfolios at the end of the third quarter of 2015. GS investors should be aware of a decrease in hedge fund sentiment recently. There were 67 hedge funds in our database with GS holdings at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as American Express Company (NYSE:AXP), Diageo plc (ADR) (NYSE:DEO), and Honeywell International Inc. (NYSE:HON) to gather more data points.

Follow Goldman Sachs Group Inc (NYSE:GS)
Trade (NYSE:GS) Now!

To the average investor there are many formulas shareholders employ to grade publicly traded companies. Some of the less utilized formulas are hedge fund and insider trading activity. Our experts have shown that, historically, those who follow the best picks of the top money managers can beat the broader indices by a solid margin (see the details here).

Now, we’re going to take a gander at the new action encompassing Goldman Sachs Group, Inc. (NYSE:GS).

How are hedge funds trading Goldman Sachs Group, Inc. (NYSE:GS)?

Heading into Q4, a total of 63 of the hedge funds tracked by Insider Monkey were bullish on this stock, a 6% slide from one quarter earlier. With the smart money’s capital changing hands, there exists a select group of key hedge fund managers who were upping their stakes meaningfully (or had already accumulated large positions).

When looking at the institutional investors followed by Insider Monkey, Berkshire Hathaway, managed by Warren Buffett, holds the largest position in Goldman Sachs Group, Inc. (NYSE:GS). Berkshire Hathaway has a $1.90 billion position in the stock, comprising 1.5% of its 13F portfolio. On Berkshire Hathaway’s heels is Greenhaven Associates, managed by Edgar Wachenheim, which holds a $577.4 million position; 11.5% of its 13F portfolio is allocated to the stock. Other peers with similar optimism encompass Boykin Curry’s Eagle Capital Management, Richard S. Pzena’s Pzena Investment Management, and Cliff Asness’ AQR Capital Management.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!