Goldman Sachs Group Inc.‘s quarterly Hedge Fund VIP stock basket has surged 16% year-to-date, outpacing the S&P 500, which has climbed just over 10% in 2025, as tracked by SPDR S&P 500 (NYSE:SPY).
The basket reflects the most favored holdings among top institutional hedge funds.
Strong Historical Performance Track Record
The VIP basket has maintained superior performance since its 2001 launch, averaging 15% annual returns compared to the S&P 500’s 11%. “The basket has been a strong historical performer at the cost of high volatility,” wrote Ben Snider, Goldman’s senior strategist, in an August 20 client note, reported Business Insider.
The second quarter of 2025 edition includes 50 stocks, heavily weighted toward technology and communication services sectors. Sixteen new stocks joined the list during the second quarter.
Top Hedge Fund Holdings Lead Market
Among the 14 most popular stocks held by at least 25 hedge funds, several standouts emerge:
NVIDIA Corp. (NASDAQ:NVDA) leads with a $4.44 trillion market cap and 36% year-to-date returns. The semiconductor giant ranks among the top 10 holdings for 98 funds, with an average 9% portfolio weight.
Meta Platforms Inc. (NASDAQ:META) posted 34% gains, held by 111 funds with 8% average weighting. The social media company maintains a $1.70 trillion market valuation.
Broadcom Inc. (NASDAQ:AVGO) delivered 35% returns with $1.46 trillion market cap, appearing in 40 funds’ top holdings.
Energy Sector Surprises
Energy stocks dominated performance rankings. Talen Energy Corp. (NASDAQ:TLN) surged 89% year-to-date, held by 29 funds with 12% average allocation. Vistra Corp. (NYSE:VST) gained 47%, appearing in 30 funds’ portfolios.
Uber Technologies Inc. (NYSE:UBER) rounded out top performers with 52% gains and $191 billion market cap.
Despite strong performance, some mega-cap stocks lagged. Apple Inc. (NASDAQ:AAPL) declined 7% despite its $3.48 trillion valuation, while Amazon.com Inc. (NASDAQ:AMZN) managed only 5% gains, according to data from Benzinga Pro.
Market analysts attribute the VIP basket’s outperformance to hedge funds’ selective stock-picking abilities and concentration in high-growth technology sectors. The basket’s volatility remains elevated compared to broader market indices, reflecting its growth-focused composition.
Current market conditions support continued institutional interest in these names, with the S&P 500 recently hitting record highs despite some individual stock volatility.
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
