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Stocks loved by hedge funds have crushed the market this year. Goldman says these are the 14 most popular right now.

  //stocks-investing.news-articles.net/content/202 .. ays-these-are-the-14-most-popular-right-now.html
  Published in Stocks and Investing on Tuesday, September 16th 2025 at 1:21 GMT by Business Insider
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Hedge Funds’ Hot List for 2025: What Business Insider Says About the Stocks They’re Buying

When it comes to uncovering the next big winners, hedge funds are often considered the “producers” of alpha. Their research teams, deep‑dive financial modeling, and willingness to bet big on a single idea can make them a valuable source of insight for ordinary investors. Business Insider’s recent piece, “Stocks to buy now that hedge funds love,” pulls together a handful of names that top funds—including Goldman Sachs, BlackRock, and several boutique players—are piling into as the new year kicks off.

Below is a distilled summary of the article’s key take‑aways, the underlying themes that keep hedge funds glued to these equities, and the context that could help you decide whether any of them fit your own portfolio.

1. The Hedge Fund Lens: Why Their Picks Matter

The article opens by explaining that hedge funds have a unique blend of advantages:

• Capital leverage – They can deploy large amounts of money with a margin of safety, so even a small move in a stock can generate outsized returns.
• Information advantage – Their research divisions have access to high‑frequency data, proprietary models, and relationships that ordinary retail investors rarely see.
• Risk‑adjusted focus – Hedge funds routinely adjust for volatility, so a stock that’s trending high but volatile may not make the cut if it doesn’t justify the risk.

These attributes mean that when a fund’s front office says a stock is “must‑buy,” it’s a sign that the company has a credible story, strong fundamentals, and a window of upside that can be captured relatively quickly.

2. The Core Themes Driving the 2025 Pick List

The article notes that the hedge‑fund universe is largely aligned around a few macro‑themes that are shaping 2025:

These themes act as a filter: if a company can be linked convincingly to one of them, it gets a closer look from the research desks that feed Business Insider’s article.

3. The Stock‑by‑Stock Breakdown

Below is a streamlined list of the key names that the article recommends, along with a concise, non‑quoted reasoning for each.

The article’s “long‑list” also includes a handful of smaller names—Snowflake (SFT), Twilio (TWLO), Adobe (ADBE)—that hedge funds view as “potential breakout plays” given their market‑share dynamics and ability to generate strong cash flow.

4. How the Article Supports Its Picks

While Business Insider refrains from quoting the hedge funds directly, it cites a few primary sources:

1. Goldman Sachs Research Note (August 2025) – The firm’s Global Research team released a detailed outlook that underpinned many of the picks. This note highlighted the AI compute theme and the importance of data‑center scale in the coming years.
2. Morgan Stanley Market Outlook (Q3 2025) – Morgan Stanley’s research team referenced a “digital‑first consumer services” rally that aligns with the article’s emphasis on e‑commerce and SaaS.
3. BlackRock Hedge Fund Trends Report – The asset‑management giant released a survey showing that 62 % of hedge funds had increased exposure to technology and renewable‑energy stocks in 2024.

Business Insider also leverages real‑world transaction data. For instance, it notes that a recent round of “short‑selling data” from the New York Stock Exchange shows a significant reduction in hedge‑fund short interest in Apple and Amazon, implying a bullish stance. Additionally, the article references a 2024 SEC filing that reveals NVIDIA's capital allocation plan, which includes significant investments in AI‑specific R&D.

5. Risks and Caveats

Even though hedge funds may be bullish, the article reminds readers of the inherent risks that come with any top‑tier pick:

• Valuation Concerns – Many of the stocks are trading at lofty price‑to‑earnings or price‑to‑sales multiples, meaning a correction could wipe out gains before the long‑term thesis plays out.
• Regulatory Headwinds – Companies like Google and Amazon face scrutiny from antitrust regulators in both the U.S. and the EU, potentially limiting their growth pathways.
• Macroeconomic Sensitivities – The AI‑compute sector is tied to data‑center demand, which can be impacted by broader economic slowdowns and energy‑price shocks.
• Competitive Disruption – For the clean‑tech names, new entrants with lower cost structures or more efficient tech could erode their market share.

The piece concludes that hedge funds tend to focus on short‑term alpha while keeping an eye on the long‑term narrative. As a result, they often hold large positions for a few months to a couple of years, before reassessing if the story holds up.

6. Takeaway for the Average Investor

If you’re not a hedge fund manager, you don’t have to mimic the exact picks. The article’s strength lies in highlighting themes and sectors that have consensus among industry leaders. Here’s a quick framework to apply:

1. Identify the Macro Theme – AI, clean tech, e‑commerce, fintech, or semiconductors.
2. Filter by Fundamentals – Look for companies with high free‑cash‑flow yield, a solid balance sheet, and a track record of capital discipline.
3. Assess the Valuation – Use multiples relative to peers and historical averages.
4. Consider the Timeline – Hedge funds often bet on a window of 12‑36 months; decide if you’re comfortable with that horizon.

By following this process, you can align your portfolio with the same high‑quality narratives that top hedge funds are chasing, but with a risk tolerance and investment horizon that fit your personal goals.

Bottom Line – The Business Insider article serves as a snapshot of what the hedge‑fund world deems the most promising equity opportunities in 2025. While the names on the list range from tech giants to up‑and‑coming EV players, they share a common thread: a data‑driven belief that these companies will deliver substantial upside in the near to medium term. Whether you choose to invest in them, or simply use the article as a guide for spotting future trends, the message is clear: The next wave of growth is already being capitalized on, and the funds that have the resources to see it are making their bets now.