We have noted that hedge fund performance over the past couple of years, especially by some of the bigger funds, has trailed the overall market performance. Part of the problem for some of the funds, especially those that are long/short, is that market volatility mostly has remained tepid, and with the exception of a big spike back in the fourth quarter, it is back trading just above the levels we saw for much of the past few years.

Despite the underperformance of some managers, the holdings of the top hedge funds are always of interest to investors, and with good reason. Since portfolio managers tend to talk among themselves, good ideas get spread around and often end up in many portfolios.

A new Jefferies research report notes that while most hedge funds long position books generally underperformed the market last month, they suggest investors follow the price momentum stocks that the high turnover funds had in May that were winners. Of the 20 stocks that fit the criteria, we picked four of the best known of the companies.

Array BioPharma

This company broke out through a triple top formation and rocketed higher in May. Array BioPharma Inc. (NASDAQ: ARRY) engages in the research, development and commercialization of targeted small molecule drugs for the treatment of cancer and other high-burden diseases.

Its portfolio includes binimetinib, selumetinib, encorafenib, filanesib, ipatasertib, varltinib, danoprevir, ARRY-797, larotrectinib, tucatinib, ARRY-382, motolimod, prexasertib, GDC-0575, LOXO-292, LOXO-195 and AK-1830.

The company announced in late May a four-year landmark analysis of the long-term benefit of Braftovi + Mektovi from the Columbus trial. Both the overall survival and progression-free survival data remained consistent with prior reports and continue to represent new benchmarks for Braftovi + Mektovi inhibitor combinations in the treatment of advanced melanoma.

The Wall Street consensus price target for the shares is $28.80, and the stock closed at $28.71 on Tuesday.

Roku

This stock has been on fire and could still have big upside potential. Roku Inc. (NASDAQ: ROKU) provides a streaming platform for television. It operates through two business segments. The Player segment consists of net sales of streaming media players and accessories through retailers and distributors, as well as directly to customers through the company’s website.

The Platform segment includes fees received from advertisers and content publishers, as well as from licensing the company’s technology and proprietary operating system to service operators. With many people cutting the proverbial cable and satellite cord, this is a great way to play the sector.

The consensus price target is $76.63, and shares closed way above that level Tuesday at $100.20.

SeaWorld Entertainment

While this company changed the way it does shows due to a degree of public outcry a few years back, the parks remain a prime summer attraction. SeaWorld Entertainment Inc. (NASDAQ: SEAS) is a leading theme park company that delivers family-oriented entertainment through a diversified array of offerings and a focus on animal interaction and education.

The company owns and operates 11 theme parks in the United States, which attract more than 20 million visitors annually. Key brands include SeaWorld (with parks in Florida, California and Texas), Busch Gardens (Florida and Virginia) and Sesame Place (Pennsylvania). Flanker brands include Discovery Cove (Florida), Aquatica (Florida, California and Texas), Adventure Island (Florida) and Water Country USA (Virginia).

The $32.82 consensus price objective compares with the most recent closing share price of $29.31.

Sinclair Broadcast

This company was turned away last year in its efforts to buy Tribune Media, but it has been hot lately. Sinclair Broadcast Group (NASDAQ: SBGI) is a television broadcasting company. It focuses on providing content on its local television stations and digital platforms.

Sinclair’s Broadcast segment consists of its broadcast television stations. The content distributed through its broadcast platform includes programming provided by third-party networks and syndicators, local news, its own networks and other original programming produced by it.

Sinclair also owns digital and Internet media products that are complementary to its portfolio of television station related digital properties. It focuses on offering marketing solutions to advertisers. Its other business consists of original networks and content, digital and Internet solutions, technical services and other non-media investments.

Shareholders receive a 1.58% dividend. The consensus price target is a massive $70.75. Shares closed Tuesday at $51.03.

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Top hedge funds now are bullish on these four red-hot price momentum stocks. Note that the market has had a big run in June, so it may make sense to buy smaller positions and see if we don’t pull back some.

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