4 Stocks That Both Top Hedge Funds and Mutual Funds Have Loaded Up On

By Lee Jackson Updated Jan 30, 4:52PM EST · Published Aug 28, 7:30AM EDT

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4 Stocks That Both Top Hedge Funds and Mutual Funds Have Loaded Up On — © Valeri Potapova / Shutterstock.com

To say that Wall Street portfolio managers tend to talk among themselves is probably an understatement, as those in the industry tend to mingle professionally and socially. However, since hedge funds and mutual funds often have far different strategies and time horizons, they often have widely different portfolio holdings. So we found it interesting when Goldman Sachs screened various top hedge funds and mutual funds looking for holdings they had in common.

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The Goldman Sachs team found that the 13 “shared favorites” of the top mutual funds and hedge funds are outperforming the S&P 500 this year. In addition, all but one of those stocks that overlap in the firm’s Hedge Fund VIP and Mutual Fund Overweight’s baskets were also shared favorites last quarter.

24/7 Wall St. screened the list looking for stocks that also pay safe dividends. The current market environment is volatile, and dividend-paying leaders make sense in a low interest rate environment.

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Comcast

This top media and entertainment conglomerate remains a Wall Street favorite. Comcast Corp. (NASDAQ: CMCSA | CMCSA Price Prediction) is the largest U.S. provider of cable services, with over 22 million basic subscribers. It owns NBCU, which includes the NBC TV Networks, Telemundo, MSNBC, USA, Syfy, Bravo, E!, CNBC and several other cable networks, as well as Universal Films and Universal Theme Parks.

Comcast has invested in technology to build an advanced network that delivers among the fastest broadband speeds and brings customers personalized video, communications and home management offerings. Though, it is also one of the companies with the biggest corporate debt.

With the presidential election cycle starting up next year, this company stands to benefit big time, and a stunning number of the fund managers own the shares. Comcast is also a solid defensive play for nervous investors.

Shareholders receive a 1.93% dividend. The Wall Street consensus price target is $49.26, and shares closed Tuesday’s trading at $43.60.

Delta Air Lines

This company consistently has ranked high with Wall Street, but its stock sold off some recently and is offering a good entry point. Delta Air Lines Inc. (NYSE: DAL) and the regional Delta Connection carriers offer service to 334 destinations in 64 countries on six continents. Headquartered in Atlanta, Delta employs nearly 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft.

Wall Street analysts have long lauded that Delta has the most extensive hedging policy among the airlines and owns and operates a refinery in addition to a sizable hedging book. The stock outperformed last year, and if bookings and the economy continue to spike up in 2019, many believe that the company’s multiple stands to benefit the most among the major carriers.

Delta investors receive a 2.87% dividend. The consensus price objective is $69.76, and the stock was last seen trading at $56.14.

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UnitedHealth

This is a top stock to buy in the rapidly consolidating managed health sector. UnitedHealth Group Inc. (NYSE: UNH) offers the full spectrum of health benefit programs for individuals, employers and Medicare and Medicaid beneficiaries, and contracts directly with more than 850,000 physicians and care professionals and 6,000 hospitals and other care facilities.

The company is considered the most diversified payer, either by product line, geography or customer type. Its operating segments include United Healthcare, OptumRx, OptumInsight, and OptumHealth.

UnitedHealth investors receive a 1.94% dividend. The $269.76 consensus price target is well above the most recent close at $222.93.

Visa

This top credit card issuer is becoming a huge leader in digital pay. Visa Inc. (NYSE: V) operates the world’s largest retail electronic payments network. The company provides processing services and payment product platforms, including consumer credit, debit, prepaid and commercial payments, that are offered under Visa and related brands. According to Nilson estimates, the company is the largest global credit network (as measured by volume) and the second-largest global debit network.

Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable financial institution customers to offer consumers more choices: pay now with debit, pay ahead of time with prepaid or pay later with credit products.

Visa remains very well liked across Wall Street, as a large percentage of portfolio managers own shares of the company. It is also one of the most valuable brands in the world.

Investors receive just a 0.55% dividend. The consensus price objective is $200.50. The stock closed most recently at $178.38.

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These top shared favorite holdings probably should come as no surprise. They make sense as they are huge, dominate much of their specific business lines, are very liquid and look to continue to maintain their growth trajectory for the foreseeable future.

About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.