For the first time in 10 weeks as of last week, hedge funds bought more stocks of US companies than they sold, adding $554m to their portfolios, according to a report by Reuters citing data from the Bank of America (BoA).
According to a BoA client note on client flows, the net purchases came in a week when the S&P 500 index posted a record high close on Friday for the first time in two years, amid a rally in chipmakers and mega-cap technology stocks.
To date, though, hedge fund remain net sellers of roughly $2bn in US company shares.
ETFs and large companies saw the lion’s share of the purchases as hedge funds added over a combined $200m across both. In terms of stock sectors, energy and healthcare were the top two for hedge fund acquisitions.
