Hedge fund positioning continues to be an important indicator for wealth managers monitoring institutional sentiment. According to Goldman Sachs’ Q2 2025 Hedge Fund VIP list, the stocks most frequently ranked among hedge fund top holdings have once again outpaced the broader market this year.
The VIP basket has delivered a 16% year-to-date gain, compared to a roughly 10% rise in the S&P 500. Since the list’s inception in 2001, the strategy has generated average annual returns of 15%, outstripping the benchmark’s 11% over the same period. For advisors, this data reinforces how concentrated hedge fund allocations—particularly in large-cap growth and technology—remain influential drivers of performance.
Goldman highlighted that this basket is not without risks. “The basket has been a strong historical performer at the cost of high volatility,” wrote Ben Snider, senior strategist at the firm, in an August 20 client note. For RIAs evaluating the signal, it’s a reminder that hedge fund conviction tends to amplify both upside and downside exposure.
The Q2 list includes 50 names, with technology and communication services dominating. Sixteen new companies entered the group this quarter, but a smaller subset continues to attract the largest hedge fund concentration. Among the most popular holdings right now are:
• Microsoft
• Amazon
• Meta Platforms
• NVIDIA
• Alphabet.
These companies consistently appear across institutional portfolios as top 10 holdings, underscoring their central role in hedge fund equity strategies.
The 5 stocks most frequently appearing in hedge fund top 10 holdings provide a useful snapshot for advisors watching institutional flows. Each of these names is held by at least 25 hedge funds in significant size. They represent leading franchises with substantial market caps, and their presence signals where hedge funds are allocating capital in size. For wealth managers, that information can help inform tactical discussions with clients who want to understand institutional positioning relative to their own portfolios.
The enduring appeal of these stocks also reflects broader market themes. Hedge funds continue to favor secular growth companies with robust balance sheets and dominant market share. For example, the continued strength of mega-cap technology names aligns with the market’s appetite for AI exposure, cloud infrastructure expansion, and digital advertising recovery. Similarly, concentration in these areas suggests hedge funds are prioritizing liquidity and scalability—an important consideration for wealth advisors counseling clients with significant assets.
For client conversations, advisors may frame this data in two ways. First, hedge fund VIP lists serve as a useful lens into institutional conviction, revealing the equities with the strongest staying power in professional portfolios. Second, the concentration risk is real. While these names have led the market higher, they are also the most crowded trades, and a reversal in sentiment could spark sharp corrections.
Ultimately, hedge funds remain heavily tilted toward a narrow group of growth and technology leaders. For RIAs, monitoring these allocations can help guide asset allocation discussions, risk management considerations, and conversations around diversification beyond the most popular institutional trades.
