The hedge fund community has bought many stocks with conviction during this year’s market turmoil, according to Goldman Sachs, and those same names may outperform going forward. The Wall Street firm analyzed the holdings of 786 hedge funds with a combined $2.3 trillion of gross equity positions at the start of the fourth quarter, based on regulatory filings. Goldman then identified several Russell 1000 stocks with the largest increases in the number of hedge fund owners during the third quarter — the so-called “rising stars.” “The shift in popularity with hedge fund investors could be a strong signal for future stock performance,” Goldman equity strategist Ben Snyder said in a note. Goldman said that during the past 20 years, these rising hedge fund stars have typically outperformed sector peers during the quarters following their rise in popularity. UnitedHealth tops the list, with 31 hedge funds adding stock in the last quarter. The health care name is up nearly 5%, significantly outperforming the market. PayPal also saw large hedge fund purchases in the third quarter. The payments company beat earnings and revenue expectations for the third quarter, but fourth quarter revenue estimates beat analysts’ expectations. The stock is down nearly 60% this year. Several hedge funds also bought Pinterest shares during this year’s 31% selloff. Unlike rivals Meta and Snap, the social media company downplayed the online advertising trend in the latest quarter. The international flavor and aroma is also liked by many professional investors. Earlier this year, it was revealed that Carl Icahn owns a 4% stake in the New York-based fragrance company. In late 2019, International Flavors & Fragrances merged with DuPont’s nutrition and biosciences unit to form what is now a $26 billion consumer giant. However, the stock is down 33% this year. Other top picks among hedge funds include Signify Health, Edwards Lifesciences and TransUnion.