Latest news with #BenSnider
Yahoo
4 days ago
- Business
- Yahoo
Goldman says hedge funds are buying U.S. tech stocks at fastest pace in a decade
-- U.S. hedge funds have been buying equities for four consecutive weeks, with the last week's long buying in dollar terms being the largest since November, according to Goldman Sachs' prime brokerage desk. Vincent Lin of Goldman Sachs has noted that this trend indicates a heightened willingness by hedge funds to assume idiosyncratic risk. In terms of sectors, 10 out of 11 U.S. sectors witnessed net buying, with the information technology sector leading the pack. This sector witnessed the most significant long buying in over a decade. Fund managers purchased nearly every subsector within tech, with semiconductors and semiconductor equipment leading the way. However, software experienced a modest net selling last week. Last week, hedge funds adjusted their positions by decreasing their holdings in the Magnificent 7 tech stocks while increasing their exposure to China ADRs in the first quarter. Despite the escalating trade tensions at the end of the quarter, hedge funds increased their exposure to China ADRs. The most popular China ADRs among U.S. hedge funds include Alibaba Group (NYSE:BABA), PDD Holdings (NASDAQ:PDD), Baidu (NASDAQ:BIDU), and (NASDAQ:JD). However, this shift in investment strategy did not yield the expected results as the Magnificent 7 stocks returned a positive 12% during the second quarter to date, while trade tensions negatively impacted China ADRs. Despite this, U.S. megacap companies continue to be among the most popular long positions for hedge funds. Ben Snider, leading the team at Goldman Sachs, noted that despite a volatile macroeconomic backdrop, U.S. equity long/short hedge funds have managed to maintain a positive return of 1% year-to-date, thanks to strong stock-picking. He also mentioned that the rising short interest has pushed hedge fund gross leverage to a record high. For the first time since the 2021 short squeeze, short interest in the median S&P 500 stock has risen above the long-term historical average, increasing to 2.3% of float from 1.8% in December 2024. In terms of sectors, hedge funds reduced their net exposure to healthcare and increased their holdings in infotech, consumer discretionary, and industrials. Related articles Goldman says hedge funds are buying U.S. tech stocks at fastest pace in a decade BTIG upgrades Doximity saying pullback on macro fears overdone CAE taps Northrop Grumman's Matthew Bromberg as new CEO Sign in to access your portfolio
Yahoo
22-05-2025
- Business
- Yahoo
Goldman Sachs shares 20 'rising star' stocks that a growing number of hedge funds are betting on
Hedge funds shifted focus from the Magnificent Seven to other stocks in the first quarter. Goldman Sachs identified 20 stocks with increased hedge fund interest in that period. Stocks with rising hedge fund interest often outperform sector peers, the bank said. As hedge funds trimmed their Magnificent Seven positions in the first quarter, they increasingly turned their attention toward some other stocks. In Goldman Sachs' Hedge Fund Trend Monitor published May 20, the firm highlighted 20 stocks that an increasing number of hedge funds added to their holdings in that period. That heightened interest could be a sign that the stocks are primed for strong returns in the months ahead, the bank said. "Historically, stocks with the largest increase in the number of hedge fund investors ('Rising Stars') have typically gone on to outperform sector peers during the quarters following their rise in popularity," said the note, authored by a team of strategists led by Ben Snider, a managing director. The utilities, financials, and consumer discretionary sectors each had five stocks on the list. Two have AI exposure: Sempra and Kinder Morgan. The average market cap of the 20 stocks on the list is $17 billion. We've listed the stocks below, along with their net gain in the number of funds that own them. Knight-Swift Transportation (20). Lithia Motors (19). Yum Brands (17). Sempra (16). US Bancorp (16). NiSource (15). Essential Utilities (15). SLM (15). Kinder Morgan (15). Tapestry (14). Alliant Energy (14). BlackRock (14). Zions Bancorporation (14). First American Financial (14). Floor & Decor Holdings (14). Darling Ingredients (13). Edison International (13). Wyndham Hotels & Resorts (13). Expand Energy (13). Labcorp (12). Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
21-05-2025
- Business
- Business Insider
Goldman Sachs shares 20 'rising star' stocks that a growing number of hedge funds are betting on
While hedge funds trimmed their Magnificent Seven positions in Q1, they increasingly turned their attention toward some other stocks. In Goldman Sachs' Hedge Fund Trend Monitor published May 20, the firm highlighted 20 stocks that an increasing number of hedge funds added to their holdings in Q1. That heightened interest can be a sign that the stocks are primed for strong returns in the months ahead, the bank said. "Historically, stocks with the largest increase in the number of hedge fund investors ('Rising Stars') have typically gone on to outperform sector peers during the quarters following their rise in popularity," read the note, authored by a team of strategists led by Managing Director Ben Snider. The utilities, financials, and consumer discretionary sectors each had five stocks on the list. Two have AI exposure: Sempra and Kinder Morgan. The average market cap of the 20 stocks on the list is $17 billion. We've listed the stocks below, along with their net gain in the number of funds that own them. Knight-Swift Transportation (20) Lithia Motors (19) Yum! Brands (17) Sempra (16) US Bancorp (16) NiSource (15) Essential Utilities (15) SLM (15) Kinder Morgan (15) Tapestry (14) Alliant Energy (14) BlackRock (14) Zions Bancorporation (14) First American Financial (14) Floor & Decor Holdings (14) Darling Ingredients (13) Edison International (13) Wyndham Hotels & Resorts (13) Expand Energy (13)
Yahoo
16-03-2025
- Business
- Yahoo
Is NVIDIA Corporation (NVDA) the Best Growth Stock to Invest in for the Next 10 Years?
We recently published a list of . In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other best growth stocks to invest in for the next 10 years. On March 8, Ben Snider, Goldman Sachs senior equity strategist, joined CNBC to discuss the state of the economy today. Snider noted that the key struggle has been the market struggle to assess the forward trajectory of the economy. The market entered this year with optimism for the growth trajectory. However, over the past few weeks, we have seen a very sharp downturn. There is good news to extract from the scenario. Snider explained that if we look at where the market is priced today, it seems much more reasonable. Therefore the base case remains the same the economy is in good shape and is growing. He also noted that a confirmation of the growth came in with the jobs report, moreover, earnings are still growing, meaning that the equity market should be moving higher too. However, the key question that remains unanswered is what sectors investors should look forward to. Most of the sectors have been volatile. Therefore, as per Snider, the best approach would be not to go all in for a single sector. He likes healthcare, which has been one of the best-performing sectors in the market so far. This is because despite the performance the sector is still trading at the lowest valuations compared to the market. Snider mentioned that this may be a good buying period as historical data tells us that when an investor buys the S&P 500 down 5%, it generates a positive return on investment over the next 5 months 85% of the time. Moreover, Goldman Sachs has anticipated moderate yet resilient global growth in 2025, driven by the strong performance of the United States. The firm expects the US economy to be a primary driver of global growth, supported by a robust labor market, consistent consumer spending, solid credit conditions, sufficient liquidity, and increased capital spending related to AI. In addition, regarding the tariff situation, Goldman Sachs believes that the 'Fed Put' will come into play and ease monetary policy, however, terminal rates are expected to be higher than previously anticipated. To curate the list of the 10 best growth stocks to invest in for the next 10 years, we looked at various online rankings. Using these rankings we aggregated a list of best growth stocks for the next 10 years. Next, we checked the sales growth of each stock from Seeking Alpha and added only those companies that have grown more than 15% over the past 5 years. Lastly, we ranked the stocks in ascending order of the number of hedge fund holders, sourced from Insider Monkey's Q4 2024 database. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A close-up of a colorful high-end graphics card being plugged in to a gaming computer. NVIDIA Corporation (NASDAQ:NVDA) is a full-stack computing infrastructure company that is leading AI technology through its GPUs and CPUs. On March 12, Citi analyst Atif Malik maintained a Buy rating on the stock with a price target of $163. Malik's Buy rating is based on Nvidia's strategic positioning and upcoming product developments. The analyst noted that the unveiling of Blackwell Ultra and Rubin chips is expected to offer improvements in inference performance. The analyst believes that the stock is trading below its historical price-to-earnings trough, making it an attractive risk/reward scenario. Moreover, NVIDIA Corporation (NASDAQ:NVDA) has also mitigated risks associated with its sales exposure to China and Singapore. During the fiscal fourth quarter of 2025, the company grew its revenue by 78% year-over-year to reach $39.3 billion. Notably, it reached a record quarterly revenue for its Data Center segment which grew 93% during the same time to reach $35.6 billion. NVIDIA Corporation (NASDAQ:NVDA) is one of the best growth stocks to invest in for the next 10 years. RiverPark Large Growth Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter: 'NVIDIA Corporation (NASDAQ:NVDA): NVDA was a top contributor in the fourth quarter following blowout 1Q results and guidance driven by strong data center sales (+427% year-over-year). The company reported revenue of $26 billion, up 262% year-over-year, and EPS of $6.12, up 462% year-over-year and 9% ahead of expectations. Revenue guidance for 2Q of $28 billion was 5% above very high expectations. The artificial intelligence arms race, kicked off by ChatGPT and Alphabet's Bard, among others, has generated tremendous demand for Nvidia's next generation graphic processors. Overall, NVDA ranks 3rd on our list of best growth stocks to invest in for the next 10 years. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
16-03-2025
- Business
- Yahoo
Is Beam Therapeutics Inc. (BEAM) the Best Growth Stock to Invest in for the Next 10 Years?
We recently published a list of . In this article, we are going to take a look at where Beam Therapeutics Inc. (NASDAQ:BEAM) stands against other best growth stocks to invest in for the next 10 years. On March 8, Ben Snider, Goldman Sachs senior equity strategist, joined CNBC to discuss the state of the economy today. Snider noted that the key struggle has been the market struggle to assess the forward trajectory of the economy. The market entered this year with optimism for the growth trajectory. However, over the past few weeks, we have seen a very sharp downturn. There is good news to extract from the scenario. Snider explained that if we look at where the market is priced today, it seems much more reasonable. Therefore the base case remains the same the economy is in good shape and is growing. He also noted that a confirmation of the growth came in with the jobs report, moreover, earnings are still growing, meaning that the equity market should be moving higher too. However, the key question that remains unanswered is what sectors investors should look forward to. Most of the sectors have been volatile. Therefore, as per Snider, the best approach would be not to go all in for a single sector. He likes healthcare, which has been one of the best-performing sectors in the market so far. This is because despite the performance the sector is still trading at the lowest valuations compared to the market. Snider mentioned that this may be a good buying period as historical data tells us that when an investor buys the S&P 500 down 5%, it generates a positive return on investment over the next 5 months 85% of the time. Moreover, Goldman Sachs has anticipated moderate yet resilient global growth in 2025, driven by the strong performance of the United States. The firm expects the US economy to be a primary driver of global growth, supported by a robust labor market, consistent consumer spending, solid credit conditions, sufficient liquidity, and increased capital spending related to AI. In addition, regarding the tariff situation, Goldman Sachs believes that the 'Fed Put' will come into play and ease monetary policy, however, terminal rates are expected to be higher than previously anticipated. To curate the list of the 10 best growth stocks to invest in for the next 10 years, we looked at various online rankings. Using these rankings we aggregated a list of best growth stocks for the next 10 years. Next, we checked the sales growth of each stock from Seeking Alpha and added only those companies that have grown more than 15% over the past 5 years. Lastly, we ranked the stocks in ascending order of the number of hedge fund holders, sourced from Insider Monkey's Q4 2024 database. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A patient undergoing MRI scanning to effectively diagnose Liver Diseases. Beam Therapeutics Inc. (NASDAQ:BEAM) is a biotechnology company that focuses on creating precision genetic medicines using base editing technologies for genetic disorders. Its base editing technology is designed to make precise and efficient single-base changes at targeted genomic sequences, without making double-stranded breaks in the DNA. Its pipeline products include BEAM-101, BEAM-201, BEAM-301, and BEAM-302, which are used for serious diseases. On March 10, Beam Therapeutics Inc. (NASDAQ:BEAM) was upgraded to Buy from Hold Jones Research analyst Soumit Roy. The analyst has set a price target of $34. Roy noted that the company announced encouraging preliminary data from its Phase 1/2 trial of BEAM-302 for alpha-1 antitrypsin deficiency (AATD). BEAM-302 is a medication that uses a liver-targeting lipid nanoparticle to deliver a guide RNA and an mRNA that encodes a base editor, which is designed to correct the PiZ mutation that causes AATD. The firm has increased the probability of success against AATD to 35% from 15% and also increased its adjusted peak sales to $1.9 billion in 2036, noting that BEAM-302 could be a one-time treatment for AATD. Jones Research believes that the data de-risks the company's platform on multiple levels. Beam Therapeutics Inc. (NASDAQ:BEAM) is one of the best growth stocks to invest in for the next 10 years. Overall, BEAM ranks 9th on our list of best growth stocks to invest in for the next 10 years. While we acknowledge the potential of BEAM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BEAM but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey.
