In the report, Lori Calva Sinar, head of equity strategy at Royal Bank of Canada, said that technology, media and Internet-related stocks dominated this ranking, and Facebook ranked first. RBC also found that 40% of the hedge funds in this survey hold shares in Facebook, which is equivalent to 1.7% of the total assets of hedge funds.
Some new faces in this list are dubbed by RBC as "hedge fund hot dogs", including Booking Holdings, Electronic Arts, MasterCard and UnitedHealth. At the same time, Apple is still on the list, but it has dropped from eighth place to eighteenth place, while PayPal Holdings has dropped out of the list.
In the second list named "Hedge Fund Hotels" published by Royal Bank of Canada (RBC), analysts rank the stocks with the largest market value owned by hedge funds from top to bottom. The list is more diverse, with Envision Healthcare Corp topping the list.
Calva Sina said that the hedge fund "Hotdog" has basically outperformed the market since 20 10, which can be regarded as "proof of active management". In the two years of 20 14 and 20 16, the growth stocks failed to exceed the value, which may indicate the potential growth tendency of the stocks in this list.
In addition, the so-called hotels have basically lagged behind the market since 20 15, and have surpassed the market from 20 12 to 20 14.
As for concerns about crowded transactions, Calva Sinar said that according to the experience of Royal Bank of Canada, active stocks held by active funds often have sufficient and popular reasons, such as a good foundation.
She pointed out that since RBC began to track these data at the end of 20 10, the company's stock holdings have always exceeded the broader market, but she added, "We still believe that position is a risk factor worthy of monitoring".