Goldman Sachs says the stocks most owned by hedge funds are outperforming the market.

The bank's hedge fund VIP (very important positions) list consists of the 50 stocks that "appear most often among the top 10 holdings of fundamentally driven hedge fund portfolios" for the December quarter. Goldman analyzed the positions of 808 hedge funds with total long and short stock holdings of $2.1 trillion.

"Our Hedge Fund VIP basket of most popular long positions has returned 4% YTD [through Feb. 20], outperforming the S&P 500 during the recent correction in contrast to its typical drawdown behavior," strategist Ben Snider wrote in a note to clients Thursday. "From an implementation standpoint, the hedge fund VIP list represents a tool for investors seeking to 'follow the smart money' based on 13F filings."