Yes, to do this I'd recommend using the Library option.
Once you've added one or more Favorites, these will automatically be indexed into the Library (this may take a bit of time if you have a lot of movies).
Once indexed, the titles will be grouped together and can be browsed through the Library item.
You can also create favorites from Library categories (All Movies, specific genres, etc...) just long-press on a category while browsing in the Library to set a particular item as a Favorite.
Once you have the Library Favorites you want, you can hide your folder based Favorites (if desired) by long-pressing on them and selecting the Hide Favorite option. Doing this will keep the folder indexed in the Library, but hide it from the home screen.
Lastly, if you want to get real fancy you can add custom artwork for your newly created favorites. This option can also be found by long-pressing on a Favorite and choosing the Select Artwork option. Details on the ideal artwork sizes can be found here.
https://support.firecore.com/hc/en-us/articles/215090947-Metadata-101