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Hedge funds exit consumer discretionary sector in Q2, says S&P

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The latest S&P Global Market Intelligence Hedge Fund Tracker shows the top hedge funds managed approximately USD154 billion in equity holdings in Q2 2017, down slightly from the USD157 billion under management in Q1 2017.

The total number of equity positions held also fell slightly from 427 in Q1 to 423 in Q2, as hedge funds made a significant exit from the consumer discretionary sector.
 
S&P’s tracker reviews 13F filings made by pure play hedge funds to provide an aggregate analysis of hedge fund equity ownership, highlighting hedge fund investments in specific stocks and sectors.
 
“Though overall equity holdings held relatively steady from Q1 to Q2, the investment mix shifted considerably among top hedge funds who were net sellers in 6 out of the 11 sectors of the S&P 500,” says Pavle Sabic (pictured), Head of Market Development, S&P Global Market Intelligence. “We also see a great deal of divergence in strategy among top funds, evidenced by the fact that Microsoft is both the most bought single stock among top funds and the third-most sold single stock among top funds.”
 
According to the Q2 2017 Hedge Fund Tracker, Hedge funds sold USD3 billion in consumer discretionary stock in Q2, led by USD1 billion in sales of Nike stock. The healthcare sector saw USD1.4 billion in sales among top hedge funds and the information technology sector saw USD1.1 billion in sales by large funds.
 
Within the technology sector, Facebook was the most-sold single stock with USD1.5 billion in sales during Q2, followed by Microsoft (USD1.5 billion), Apple (USD1.2 billion), and Alphabet (USD1.1 billion). However, Microsoft was also the top buy among large hedge funds, with USD1.3 billion in new investment during the quarter.
 
Hedge funds bought 18.1 million shares of Microsoft stock in Q2, for a total investment of USD1.3 billion. Other stocks receiving attention from hedge fund buyers were NXP Semiconductors (USD1.2 billion), Baker Hughes (USD1.1 billion), O’Reilly Automotive (USD697 million), and Wells Fargo & Company (USD659 million).
 
Hedge funds also sold 9.8 million shares of Facebook stock in Q2, totalling USD1.5 billion. Other stocks seeing the largest sell-off among hedge funds were Humana (USD1.3 billion), Microsoft (USD1.2 billion), Alphabet (USD1.1 billion), and PayPal (USD1.1 billion)

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