GettyTo profit from the stock market, be sure to follow the "smart money." Just figure out where hedge funds are investing, and then do the same. It's a strategy that would have worked this year if executed properly, as the stocks most widely held by hedge funds have outperformed the broader market. Luckily for any aspiring smart-money tracker, Goldman Sachs maintains an index of stocks in which fundamentally-driven hedge funds hold large positions — in other words, the companies that matter most to speculative institutional investors. The Goldman Hedge Fund VIP basket has climbed by about 10% this year, beating the S&P 500 by almost 4 percentage points.