Hedge Funds Lag Market, but Their Top Stock Picks Trounce It

A new Goldman Sachs study finds that while hedge funds are underperforming the market this year, stocks that are most popular with hedge funds are killing it.

Hedge funds are on track to finish yet another year way underperforming the major market benchmarks — as well as the passively invested exchange-traded funds (ETFs) and index funds favored by many retail investors, who pay virtually no fees for keeping pace with the overall market.

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