The 20 most popular mutual fund increases during 2Q – Goldman Sachs

Goldman Sachs analysts gathered 20 Russell 1000 (NYSEARCA:IWF) stocks that have seen fund managers increase their positions this quarter vs. the first.

In this basket, analysts focus on shares owned by mutual funds to understand the buying of stock, considering that analyzing overweight tilts can be distorted by stock performance and benchmark weights, said Analyst Ryan Hammond.

Mutual fund sector tilts during the second quarter saw the smallest change since 2013. Financials saw the biggest change in the sector tilt among the average large-cap core mutual funds at 19 basis points, but the deviation in the sector tilt from the benchmark was the widest since 2013.

Also, mutual funds kept large underweights and generally trimmed positions in the mega-cap tech stocks, analysts said. The average large-cap mutual fund was 671 basis points underweight the Magnificent Seven stocks in the second quarter. It was 660 basis points in the first quarter.

They also kept large overweights in cyclical equities in the second quarter. But “while this tilt benefited funds for much of this year, the 11% sell-off of long cyclicals vs. short defensives in late July and early August challenged fund returns,” wrote Hammond. “Mutual fund returns data suggest managers maintained their overweight tilt in the third quarter despite the sell-off.”

These were the 20 most popular mutual fund increases:

• Exxon Mobil Corp. (XOM) – Number of funds increasing portfolio allocation vs. decreasing: 50
• Marvell Technology Inc. (MRVL) – Number of funds increasing portfolio allocation vs. decreasing: 33
• Apple Inc. (AAPL) – Number of funds increasing portfolio allocation vs. decreasing: 31
• Northern Trust Corp. (NTRS) – Number of funds increasing portfolio allocation vs. decreasing: 25
• AT&T Inc. (T) – Number of funds increasing portfolio allocation vs. decreasing: 24
• Johnson & Johnson (JNJ) – Number of funds increasing portfolio allocation vs. decreasing: 23
• Carvana Co. (CVNA) – Number of funds increasing portfolio allocation vs. decreasing: 22
• AbbVie Inc. (ABBV) – Number of funds increasing portfolio allocation vs. decreasing: 21
• Broadcom Inc. (AVGO) – Number of funds increasing portfolio allocation vs. decreasing: 21
• Crown Castle Inc. (CCI) – Number of funds increasing portfolio allocation vs. decreasing: 21
• Coinbase Global Inc. (COIN) – Number of funds increasing portfolio allocation vs. decreasing: 20
• ON Semiconductor Corp. (ON) – Number of funds increasing portfolio allocation vs. decreasing: 20
• Tapestry Inc. (TPR) – Number of funds increasing portfolio allocation vs. decreasing: 19
• American Tower Corp. (AMT) – Number of funds increasing portfolio allocation vs. decreasing: 17
• F5 Inc. (FFIV) – Number of funds increasing portfolio allocation vs. decreasing: 17
• Gilead Sciences Inc. (GILD) – Number of funds increasing portfolio allocation vs. decreasing: 17
• Gap Inc. (GPS) – Number of funds increasing portfolio allocation vs. decreasing: 17
• SBA Communications Corp. (SBAC) – Number of funds increasing portfolio allocation vs. decreasing: 17
• Becton, Dickinson and Co. (BDX) – Number of funds increasing portfolio allocation vs. decreasing: 16
• CrowdStrike Holdings Inc. (CRWD) – Number of funds increasing portfolio allocation vs. decreasing: 16