Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 78 percentage points since March 2017 ( see the details here). Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 19, though the margin of outperformance has been declining in recent years.

There’s a very good reason why we pay close attention to hedge fund sentiment before making investment decisions.

Other new investments have been made in food industry giants and producers of consumer staples, the demand for which has been positively impacted by the pandemic. Bridgewater Associates added multiple healthcare stocks, which could benefit from the ongoing and increasingly followed progress in medicine. If you’re looking for the best cheap stocks to buy now that smart investors have taken advantage of, Dalio’s most recent moves show some clear trends in this direction. The fund suffered losses during the dot-com crash in 2000 (22%) and the financial crisis in 2008 (20%) but managed to bounce back with 20%+ gains between 20 and 45% and 25% gains in 20 respectively. I would say that is absolutely the most treasured thing in the future.” This long-term perspective has previously translated into successful recoveries during tough times. Despite the hit of the pandemic, Dalio has been optimistic about the future early on, mentioning that “We’re now in a wonderful revolution in terms of the capacity to think and use that in a way.

Cheap stocks to buy now