Analysis by Goldman Sachs shows that mutual funds, large cash groups run by professional investment managers, appear to be having their best year in more than a decade. Goldman analysts, led by Cormac Conners, said in a research note on Aug. 25. This year, so far, 50% is large-cap. Mutual funds beat the market – 34% above the 10-year average. Conners added that the better performance was driven by “the fastest turnover to cash since the Global Financial Crisis”. Mutual fund managers now allocate an average of 2.4% of their portfolios to cash, up from just 1.5% at the start of the year, according to Goldman. But not all mutual funds are equally successful. Goldman notes that mutual funds with a higher allocation to growth stocks like technology are a “notable exception” and are experiencing “one of the worst performance periods on record.” .” This was driven by poor stock selection among the biggest tech stocks, which, according to the bank, are “stocks where the most overweight Growth managers have struggled.” Meanwhile, funds with large ill-considered positions within Apple have created “a significant performance drag” and deprive the average portfolio of higher returns, Conners said. Apple has surpassed the S&P 500 by 7 percentage points so far this year, he added. But growth funds have had some recent success as such stocks surged in the second half of the year. Conners noted a growing preference for growth stocks among all mutual fund managers, who “actively added” to the biggest tech stocks in the second quarter. What’s in the fund Goldman’s analysis shows that the average fund has increased exposure to Tesla, Apple, Amazon, Microsoft, Nvidia, and Alphabet, while maintaining exposure to Meta. Tesla, Apple, Amazon, Microsoft and Nvidia were the top five gainers in the second quarter, according to the bank. Other stocks with the biggest gains included Warren Buffett’s Berkshire Hathaway. The Omaha-based group has been active during this year’s bear market, acquiring stakes in Apple, Occidental Petroleum and Chevron. It also acquired insurance company Alleghany for $11.6 billion. Netflix has also made it to Goldman’s list. The streaming giant has had a rough year so far due to a well-documented subscriber loss, but said it expected to add about 1 million new net subscribers in the third quarter. . In addition to Nvidia, mutual funds also have exposure to two chip stocks – Advanced Micro Devices and NXP Semiconductors. Chip stocks have fallen this year as the sector corrects after a two-year boom caused by the pandemic, while some chipmakers also warned of slowing demand. Other stocks making the Goldman list include Visa, United Parcel Service and Charles Schwab. Conner said mutual funds also cut their exposure to more traditional cyclical sectors, such as industrials, energy, materials and finance. Salesforce had the most exposure reductions, while German chemical company Linde, maker of Marlboro Altria Group, biotech company AbbVie and Illinois-based Johnson & Johnson all dropped more than 10 basis points each.