Hedge Funds and Mutual Funds Share Favorites in Large-Cap Financials

Goldman Sachs analyzed $10 trillion in equity positions and found that hedge funds and mutual funds share similar favorites, including four large-cap financial stocks that pay dividends. The shared favorites include Bank of America (NYSE:BAC), Capital One Financial (NYSE:COF), Mastercard (NYSE:MA), and Visa (NYSE:V).

According to Goldman Sachs' Hedge Fund Trend Monitor and Mutual Fund Fundamentals reports, hedge fund portfolios remain closely tied to the AI trade, while mutual funds are underweight in the complex. However, outside of AI, both groups generally agree on sector tilts.

The four shared favorites among hedge fund and mutual fund portfolio managers are all rated a Buy by Goldman Sachs. Bank of America has a $74 target price, Capital One Financial has a $247 target price, Mastercard has a $701 target price, and Visa has a $438 target price.