Following the "smart money" can be an effective investing strategy. Billionaires tend to employ savvy people to manage their money, and they often have an information edge. That's not to say that the ultra-wealthy are clairvoyant or that they're not prone to most of the same mistakes that can affect the rest of us. Despite that, it's generally wise to listen when billionaires are sending clear signals like the one outlined below. Hedge funds enjoy many investing advantages with billionaires, and many of them manage their assets. Goldman Sachs publishes reports on important trends in hedge fund holdings and transactions.