Hedge fund interest in certain stocks can be a guiding light for their future trajectory, and Goldman Sachs has pinpointed a few that might be on the rise. In their latest analysis, Goldman scrutinized the portfolios of 695 hedge funds, managing a whopping $3.1 trillion in equity positions as they entered the year. This extensive review was anchored in recent regulatory reports. They highlighted several Russell 1000 stocks that experienced the most notable uptick in hedge fund ownership last quarter.
Ben Snider, one of Goldman’s analysts, emphasized the trend in his latest briefing: “In the past, stocks that have seen a surge in hedge fund investors—the ‘Rising Stars’—tend to outshine their sector counterparts in the succeeding quarters.”
Let’s dive into some of the standout names from Goldman’s latest Rising Stars lineup. Robinhood saw a significant boost, with 23 more hedge funds snapping up shares in the financial platform. This brought the total count of hedge funds invested in it to 66 by December 31. Despite a recent dip after the SEC concluded its investigation into Robinhood’s crypto segment, the stock has outpaced the market dramatically this year. It’s logged an impressive 34.5% gain year-to-date, a sharp contrast to the S&P 500’s modest 1.2% uptick. Looking back over the past year, Robinhood’s stock has rocketed up by about 210.6%.
Analysts on Wall Street generally have a positive outlook on Robinhood. Of the 19 covering it, 12 recommend it as a strong buy or buy, according to LSEG data. They’ve set an average price target at around $70, suggesting over 40% growth potential from its last closing price on Friday.
Then there’s Coupang, which has also bested the S&P 500 this year with a 7.8% rise since January. Over the past year, the South Korean e-commerce giant has surged roughly 30%. Nineteen additional hedge funds invested in Coupang last quarter, bringing the total to 64. Analysts are bullish here too, with 12 out of 15 endorsing it as a strong buy or buy. Its consensus price target hovers near $29, implying a 23.6% increase from its latest close. Notably, Deutsche Bank has jumped on the optimism bandwagon, recently upgrading its call on Coupang to a buy from a hold. They also lifted the price target to $28.50, forecasting a more than 20% rise. This upgrade buoyed the stock by 3.5% on that day’s trading.
Lastly, electric vehicle powerhouse Tesla is also attracting hedge fund attention, with 17 more funds picking up its stock, placing total hedge fund ownership at 101 by the end of December. Despite a 27% drop so far in 2025 and losing much of its post-election momentum, Tesla has still climbed approximately 45% over the past year.
