Reorganize your Favorites
You can drag and drop folders and objects in new locations within the Favorites side panel. This lets you move folders and objects between folders.
About this task
Note: All folders and the contents of folders are listed alphabetically.
You can reorganize folders either in the Favorites side panel or while adding a new favorite.
To reorganize your Favorites:
Procedure
Drag and drop a folder or object into another folder.
To move a folder or object to the top level, drop it on the root folder: 
Favorite objects.