Hedge funds have limited their exposure to healthcare equities, while opting for small-cap stocks in the last week, according to a report by Reuters, that cites a BofA Securities note about its clients flow trends.

The report noted that the healthcare sector has lagged the gain of over 18% of the S&P 500 index, with the S&P 500 Health Care index is down 4.39% this year. The report also added that despite this recent drop, investors have put in $5.8b into the healthcare sector this year, which is more than double the amount seen last year and the third largest inflows of any sector.

BofA saw a hedge fund outflow of almost $800m from mid- and large-cap stocks, while a reduced volume of small caps was added, the report clarified on small-cap stocks.