Similar Stories to Traders Can Make A Killing Chasing The 'smart Money' on Bing News

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.

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