Industrials are the “it” sector of the stock market for hedge funds. Goldman Sachs analyzed regulatory filings from more than 1,000 hedge funds – with gross equity positions totaling $4.4 trillion to start the year – and found that most funds are heavily overweight industrials. The bank said hedge funds entered 2026 overweight the sector by more than 7.34 percentage points relative to the Russell 3000 , a record. “Hedge funds rotated toward cyclical sectors during 4Q 2025. Funds increased overweights in Industrials by +371 bp, the largest change of any sector,” Goldman strategist Ben Snider wrote. That allocation has paid off thus far. The S & P 500 industrials sector is up 14.2% year to date. That makes it the third-best performer in that time. Over the past 12 months, industrials are up a whopping 31.5%, making the sector the biggest gainer within the benchmark over that period. Goldman Sachs also found the industrial stocks that hedge funds bought into the most, looking at the ones with the largest net position increased quarter over quarter. T1 Energy , which makes electrical components and equipment, saw 36 hedge funds increase positions in the fourth quarter of 2025 from the third quarter. Shares are down 7% year to date, but they have soared more than 250% over the past 12 months. In the past three months, the stock is also up more than 128%. Carrier Global was also among the most popular industrial picks among hedge funds, with 33 adding to their positions. The stock has climbed more than 21% in 2026. Other popular industrials among hedge funds include ITT , Bloom Energy and Everus Construction .
