3 Tech Stocks That Hedge Funds Are Buying
NEW YORK (TheStreet) -- As hedge funds try to beat the broader equity market to attract client money, they are placing increased bets on the same companies, particularly faster-growing technology stocks.
Goldman Sachs has put out its "hedge fund 'very important position' (VIP) list," made up of the stocks that hedge funds have taken large stakes in, betting on the fundamental outlook for a select group of companies.
Here are the three top tech stocks that appear most often in hedge funds' portfolios.
Apple makes the most frequent appearance among hedge funds used to generate Goldman Sachs' list, appearing as a top-10 holding 113 times, and 150 times among hedge funds with 10 to 200 positions. Shares of the Cupertino, Calif.-based maker of the iPhone account for an average portfolio weighting of 8% among those top 10 holdings.
Apple shares have been a stalwart this year, gaining 62%, far outpacing the 18% gain in the Nasdaq. Even though Apple missed analysts' estimates in the third quarter, investors are excited about the iPhone 5 and potential iPad Mini, expected to be released in September.