Goldman Sachs' 50 Stocks That Matter Most to Hedge Funds
NEW YORK (TheStreet) -- Recently, Goldman Sachs released their quarterly Hedge Fund Trend Monitor report. To compile the report, Goldman analyzed 775 hedge funds with $1.9 trillion of gross equity positions ($1.4 trillion long and $666 billion short) at the start of the third quarter of 2014. Goldman noted that the aggregate of hedge funds had returned 1% YTD, thereby severely lagging the S&P 500, which was up over 7% on the year.
Counter to this trend, Goldman's Hedge Fund VIP List of stocks that "matter most" to hedge funds trounced the S&P's 7.1% YTD gain with a gain of 8.9%. Put simply, this list of stocks is what Goldman has identified as the 50 stocks that appear most frequently among the top 10 holdings of fundamentally driven hedge fund portfolios.
Goldman notes that these 50 stocks lean toward large caps and have a median market capitalization of $44 billion compared to the median $17 billion market capitalization for components of the S&P 500.
What follows are the 50 stocks that "matter most" to hedge funds. We have also taken the time to detail out our ranking of the stock using our own proprietary quantitative ranking system at TheStreetRatings.com. Note that these ratings can change at any time. If you would like access to real-time ratings of these stocks, you can subscribe to TheStreet Quant Ratings.
50. Lamar Advertising Co.
Number of Funds with Stock as Top-10 Holding: 15
TheStreet Rating: B (Buy)
Lamar Advertising operates as an outdoor advertising company in the U.S.
It sells advertising space on billboards, including bulletins and posters; logo signs located near highway exits; and exterior and interior of public transportation vehicles, transit shelters and benches in 60 markets.
As of Dec. 31, 2013, the company owned and operated approximately 145,000 billboard advertising displays in 44 states, Canada, and Puerto Rico; and approximately 120,000 logo advertising displays in 22 states, and the province of Ontario, Canada, as well as operated approximately 38,000 transit advertising displays in 16 states, Canada, and Puerto Rico.
Lamar Advertising was founded in 1902 and is headquartered in Baton Rouge, La.
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TheStreet Ratings team rates LAMAR ADVERTISING CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate LAMAR ADVERTISING CO (LAMR) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
You can view the full analysis from the report here: LAMR Ratings Report