12,000 Hedge Fund Managers Prefer GM And Fiat Chrysler, Not Tesla

A pair of new polls by SumZero asked 12,000 buy-side members of the finance industry where investors should be putting their money in 2016. The stock market is off to a bumpy start, but the volatility and uncertainty only make stock and sector selection even more important.

In terms of 2016 being a bounce-back year, SumZero asked which lagging 2015 sector (energy, materials, utilities, industrials or financials) will perform best this year. Respondents preferred the energy sector (35.5 percent) by a wide margin over financials (21.1 percent), which came in a distant second. The materials and industrials sectors tied for the lowest number of votes at just 12.2 percent each.

Related Link: Market Bull: S&P 500 Could Fall More Than 30%

So far in 2016, the Energy Select Sector SPDR (ETF) XLE has traded down about 6.6 percent, mostly in line with the S&P 500’s decline.

Best Buys

In addition to preferred sectors, SumZero also asked which auto industry stock is the best buy at today’s prices.

General Motors Company GM was the overwhelming favorite at 37.7 percent, followed by Fiat Chrysler Automobiles NV FCAU, (17.2 percent) and Volkswagen AG (ADR) VLKAY.

Only 6.6 percent of respondents chose Tesla Motors Inc TSLA, the least popular pick among the seven choices.

Disclosure: The author holds no position in the stocks mentioned.