In a new report, Goldman Sachs analyst Amanda Sneider cross-referenced Goldman’s hedge fund and mutual fund holdings data and looked for Information Technology stocks that are popular long holdings and short holdings among both hedge funds and mutual funds.

While Goldman is overweight on Info Tech stocks as a whole, the report indicates that many institutional investors are selectively long and short some big-name stocks in the space.

Difficult Alpha

According to Sneider, the Info Tech sector historically offers high return dispersion relative to other areas of the market. While this characteristic typically means that there is greater opportunity to beat the market via stock selection within the Info Tech space, Sneider believes that this type of alpha will be harder to come by in the near term.

“We expect continued low return dispersion relative to history, making stock selection within the sector more difficult,” Sneider explains.

Current Allocations

The 839 hedge funds included in Goldman’s analysis represent…

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