Mutual funds’ top overweight stock picks according to Goldman Sachs

A trader on the floor of the New York Stock Exchange.Spencer Platt/Getty

• Mutual funds are pulling money out of financials and rotating into healthcare stocks, according to equity strategists at Goldman Sachs.
• Goldman examined 499 mutual funds with $2 trillion in assets under management.
• The share of funds beating their benchmarks has recently weakened, making their stock picking even more crucial.

The year is getting tougher for mutual funds, according to Goldman Sachs.

That’s judging by one of their most ubiquitous mandates: beat the market. The share of large-cap funds outperforming their benchmarks stands at 41%, down from a peak of 62% in April, David Kostin, the head of US equity strategy, said in a note on Wednesday.

Against this backdrop, it’s more crucial that funds are picking the stocks that will help them beat the market.

Below is the list of their most important holdings among core, growth, and value mutual funds as of June 30. It is ranked from the funds with the least overweight positions versus their benchmarks to the greatest.

Goldman examined 499 mutual funds that collectively manage $2 trillion in assets. …

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