Most investors tend to think that hedge funds and other asset managers are worthless, as they cannot beat even simple index fund portfolios. In fact, most people expect hedge funds to compete with and outperform the bull market that we have witnessed over the past few years. However, hedge funds are generally partially hedged and aim at delivering attractive risk-adjusted returns rather than following the ups and downs of equity markets hoping that they will outperform the broader market. Our research shows that hedge funds do have great stock picking skills, so let’s take a glance at the smart money sentiment towards Gilead Sciences, Inc. (NASDAQ:GILD).
Gilead Sciences, Inc. (NASDAQ:GILD) was in 89 hedge funds’ portfolios at the end of December and the sentiment has remained almost flat over the quarter. There were 90 hedge funds in our database with GILD positions at the end of the previous quarter. At the end of this article we will also compare GILD to other stocks including PepsiCo, Inc. (NYSE:PEP), Comcast Corporation (NASDAQ:CMCSA), and Medtronic, Inc. (NYSE:MDT) to get a better sense of its popularity.
In the financial world, there are plenty of tools stock traders employ to size up stocks. A duo of the best tools are hedge fund and insider trading moves. Our researchers have shown that, historically, those who follow the top picks of the elite money managers can outperform the broader indices by a solid amount (see the details here).