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IT and healthcare stocks see largest growth in hedge fund buying activity

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Information technology and healthcare stocks saw the largest growth in new hedge fund buying activity during the second quarter of 2014, according to the latest S&P Capital IQ Hedge Fund Tracker.

The tracker, reviews which reviews 13F filings by US-based pure play hedge funds and provides analysis of hedge fund stock ownership and investment in specific stocks and sectors, reveals that Allergan and Apple were the most popular individual stocks. 
 
“Both institutional and retail investors share an enormous interest in where the largest hedge funds put their money. By analysing recent filings as well as the S&P Capital IQ’s Holding Aggregator and Investor Profile Reports, we are able to get a unique level of visibility into the opaque world of hedge fund investment strategy,” says Pavle Sabic, financial risk manager, S&P Capital IQ. “We believe that making this type of information more widely available not only improves market transparency, it provides valuable information for investors who are looking to glean insight from some of the world’s most sophisticated investors.”
 
Info tech stayed at the top of the sector buys for the second quarter in a row with USD1.45 billion, with healthcare at second most popular sector for the top 10 hedge funds with USD1.4 billion. Financials down USD2.25 billion, with a decrease in American International Group USD686 and Crown Castle International USD272.
 
Allergan Inc was the top new buy among the largest 10 hedge funds with USD1.43 billion in new positions, six funds holding it; two brand new funds bought the company, two increasing existing positions and two held their stake.  The company is being aggressively pursued by Valeant Pharmaceuticals and Pershing Square Capital Management for a takeover.
 
Apple saw the second-highest level of new buying activity among hedge funds with USD855 million in new buys in Q2. Last quarter it was the second top buy with USD1.95 billion bought, but also the second top sell with USD871 million sold. This quarter, there was no such ambivalence. Also listing the top 100 positions for out top 10 hedge funds, Apple is at second spot with a USD7.2 billion overall holding.
 
Consumer discretionary company Netflix had USD752 worth of buys with two hedge funds making brand new positions in the company since last quarter. Six hedge funds now hold the stock with a total value of USD1.89 billion. Netflix places 21st in the top 100 positions
 
Twenty First Century Fox was most sold position among the top 10 hedge funds with USD1.26 billion sell off. This came from five of the top 10 hedge funds reducing their existing positions. Verizon and Time Warner are second and third biggest sell off with USD1.06 billion and USD992 respectively.
 
Citadel and Renaissance were the top two hedge funds in terms of total equity holdings, followed by Millennium Management which beat Icahn to third spot.

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