To provide insight on potentially profitable investment opportunities, we analyze equity portfolios of the largest US hedge funds. Every quarter, we select 10 best performing funds from the list and report the summaries of their overall positioning. In following parts of the report, you will find 10 largest positions of these funds, as well as the positions they opened and liquidated in the most recent quarter. Please note that we only focus on single stocks and respective derivatives (i.e., options). Therefore, we mostly leave out ETFs as well as instruments of other asset classes.
To summarize, the average quarterly return of the 10 best performing hedge funds was 8.0% in 4Q22, outperforming the S&P 500 return by 3.6 percentage points. Importantly, all ten hedge funds managed to outperform the benchmark on their own. Similarly to 3Q22, Technology, Finance, Health Care, and Consumer Discretionary remain the most popular sectors.
