Goldman Sachs Hedge Fund Stocks: Performance Snapshot 2025
Goldman Sachs' Hedge Fund VIP Basket Performance
The Goldman Sachs Group Inc. has reported that its quarterly Hedge Fund VIP stock basket has achieved a remarkable 16% gain year-to-date. This exceeds the S&P 500's rise of just over 10% in 2025. The Hedge Fund VIP basket includes stocks that are highly favored among the top institutional hedge funds, reflecting asset managers' confidence in select holdings.
Historical Performance Insights
The VIP basket has shown a strong historical performance since its inception in 2001, averaging annual returns of 15%. This performance is significantly higher than the S&P 500’s average return of 11%. As stated by Ben Snider, a senior strategist at Goldman Sachs, the VIP basket has been a notable historical performer, albeit with a cost of increased volatility.
The latest VIP basket edition for the second quarter of 2025 comprises 50 stocks, heavily weighted towards technology and communication sectors. Sixteen new stocks have been added to this edition as hedge funds continue to adjust their strategies based on shifting market conditions.
Leading Hedge Fund Holdings
Among the 14 stocks held by at least 25 hedge funds, notable performers include:
NVIDIA Corp. (NASDAQ: NVDA) has emerged as a standout with a market capitalization of $4.44 trillion and returns of 36% in 2025. Its stock is among the top 10 holdings for 98 funds, averaging a 9% portfolio weight.
Meta Platforms Inc. (NASDAQ: META) has also performed well, achieving 34% gains with an 8% average weight across 111 funds, contributing to a market valuation of approximately $1.70 trillion.
Broadcom Inc. (NASDAQ: AVGO) reported substantial returns of 35% and holds a place within the top holdings of 40 hedge funds. Its current market cap is $1.46 trillion.
Many hedge funds are focusing on these high-performing stocks, signaling a shift towards a growth-centric investment strategy.
The Energy Sector's Unexpected Success
Stocks from the energy sector have also shown remarkable performance. Talen Energy Corp. (NASDAQ: TLN) has skyrocketed by 89% year-to-date, held by 29 funds with an average allocation of 12%. Similarly, Vistra Corp. (NYSE: VST) achieved gains of 47% and is listed in 30 hedge fund portfolios.
In addition to these, Uber Technologies Inc. (NYSE: UBER) concluded this list of top performers, marking a 52% increase and a valuation of around $191 billion.
Trends and Challenges in Mega-Cap Stocks
Despite these impressive performances, several mega-cap stocks have faced challenges. For instance, Apple Inc. (NASDAQ: AAPL) has seen a decline of 7% despite a robust valuation of $3.48 trillion, while Amazon.com Inc. (NASDAQ: AMZN) managed only a 5% increase this year.
Market analysts believe that the exceptional performance of the VIP basket can be attributed to the selective stock-picking strategies employed by hedge funds, which remain concentrated in high-growth technology sectors. This growth-focused composition has resulted in heightened volatility when compared to broader market indices.
Current market dynamics suggest sustained institutional interest in these top names, even as the S&P 500 recently hit record highs amid some individual stock volatility.
Frequently Asked Questions
What is the Goldman Sachs Hedge Fund VIP basket?
The Goldman Sachs Hedge Fund VIP basket consists of stocks that are most favored by top institutional hedge funds, often resulting in significant performance advantages over broad market indices.
How has the VIP basket performed in 2025?
As of 2025, the VIP basket has surged 16% year-to-date, marking a notable outperformance relative to the S&P 500, which has risen just over 10%.
What factors contribute to the VIP basket's high performance?
The performance is attributed to selective stock-picking by hedge funds, particularly in high-growth sectors such as technology and communication services.
Which stocks are included in the VIP basket?
Key stocks in the VIP basket include NVIDIA Corp., Meta Platforms Inc., Broadcom Inc., and various energy sector stocks such as Talen Energy Corp. and Vistra Corp.
What challenges do mega-cap stocks face?
Despite strong valuations, some mega-cap stocks like Apple and Amazon have experienced declines, primarily due to market fluctuations and concentrated investments in specific sectors.
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