Here Is What Hedge Funds Think About Goldman Sachs Group, Inc. (GS)

Since Goldman Sachs Group, Inc. (NYSE:GS) has witnessed declining sentiment from the aggregate hedge fund industry, it’s safe to say that there lies a certain “tier” of hedge funds that elected to cut their entire stakes in the third quarter. It’s worth mentioning that Mike Masters’ Masters Capital Management sold off the largest investment of the 700 funds followed by Insider Monkey, totaling an estimated $222.9 million in call options., and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund dropped about $85.4 million worth. These transactions are important to note, as aggregate hedge fund interest fell by 5 funds in the third quarter.

Let’s also examine hedge fund activity in other stocks similar to Goldman Sachs Group, Inc. (NYSE:GS). These stocks are Broadcom Ltd (NASDAQ:AVGO), Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU), Enterprise Products Partners L.P. (NYSE:EPD), and China Life Insurance Company Ltd. (ADR) (NYSE:LFC). This group of stocks’ market caps match GS’s market cap.

As you can see these stocks had an average of 34  funds with bullish positions at the end of September and the average amount invested in these stocks was $2.23 billion. That figure was $4.77 billion in Goldman Sachs’ case. Broadcom Ltd (NASDAQ:AVGO) is the most popular stock in this table, while China Life Insurance Company Ltd. (ADR) (NYSE:LFC) is the least popular one with only 12 bullish hedge fund positions. Goldman Sachs Group, Inc. (NYSE:GS) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Broadcom Ltd (NASDAQ:AVGO) might be a better candidate to consider a long position.