Goldman’s hedge fund stock list is up 30% in 2024. Here’s what’s in it

Goldman Sachs’ list of top-performing longs in hedge funds has seen outsized gains in 2024, a sign that moves made by these firms have paid off this year. The bank’s so-called very important positions, or “VIP,” list has climbed about 30% year to date. That means it has outperformed both the S & P 500, which is up 24% in 2024, and the overall group of hedge funds tracked by Goldman, which has risen about 14%. Goldman strategist Ben Snider noted that hedge funds shifted somewhat to cyclical industrials from defensives in the third quarter, allowing them to benefit from the postelection rally. Notably, financial exposure grew to an overweight level not seen in at least 15 years, while these firms trimmed back on health care, consumer staples and real estate. Snider also pointed out that the firms by and large bought into two places: China and bitcoin. He found about one out of every four funds held at least one China ADR, the highest share since 2012. The funds also added exposure to the iShares Bitcoin Trust ETF (IBIT) , bringing total exchange-traded fund holdings within long portfolios to the highest level since 2012. Goldman has a running list of its very important stock picks within hedge fund long holdings. Snider said these are the “stocks that matter most.” To find these names, Goldman looks at the positions that appear most among the top 10 largest positions within portfolios. The firm only looks at funds with between 10 and 200 distinct equity positions to avoid including quantitative funds or those meant to track private equity investments. Here are 15 names that made the list: Netflix made the grade. The streaming giant hit a 52-week high on Wednesday after Pivotal Research raised its price target to $1,100, a new high on Wall Street . Pivotal’s call comes after the media giant broke records as it streamed a boxing match between Mike Tyson and Jake Paul . Shares have jumped more than 81% in 2024. While most analysts surveyed by LSEG have a buy or strong buy rating on Netflix, consensus price targets suggest the stock may pull back by about 12%. NFLX APP YTD mountain Netflix vs. AppLovin, year to date AppLovin also made news on Wall Street this week after Piper Sandler said shares have more room to advance — even after its monster surge of more than 700% year to date. “APP’s impressive revenue growth has occurred despite a challenged overall market,” analyst James Callahan wrote to clients. “Today, volumes are driving the majority of revenue growth vs pricing which we view to be positive as APP takes volume share and can ultimately grow pricing as the auction normalizes.” AppLovin is new to the list. However, most analysts surveyed by LSEG rate the stock a buy or strong buy, consensus price targets suggests shares may drop more than 23%. Eli Lilly was also included in the group. Shares have fallen more than 9% in November as President-elect Donald Trump picked vaccine skeptic Robert F. Kennedy, Jr. to lead the Department of Health and Human Services . Still, the stock is higher by more than 29% in 2024. Despite those concerns, the majority of analysts polled by LSEG have a buy or strong buy rating on Eli Lilly. The average price target suggests shares can climb another 32.5%.