Source: Wall Street News
Author: He Hao
Hedge funds raised their allocation exposure to financial stocks to the highest level since 2012, and net exposure to utility stocks reached the highest level since 2008.
On Friday, Goldman Sachs strategist Ben Snider and others said that hedge funds continued to reduce their exposure to large technology stocks and increased their allocation to cyclical stocks, including raising their allocation exposure to financial stocks to the highest level since 2012.
As investment in the field of artificial intelligence deepened and expanded, hedge funds also switched to utility stocks and entered the second quarter, and net exposure to such stocks reached the highest level since 2008.
Renewable energy giant Nextera Energy and Texas power producer Vistra are included in Goldman Sachs' hedge fund favoring stock list. The Wall Street News analysis article mentioned that some market participants pointed out that after experiencing a sharp rise, stocks such as Vistra are still cheaper than other AI concept stocks, so Wall Street analysts generally have a positive attitude towards them.
According to Goldman Sachs, other industries receiving additional hedge fund holdings include non-essential consumer goods, finance, and energy. Among financial companies, Bank of New York Mellon, Discover Financial Services, and S&P Global are included in the “Rising Stars” list.
Goldman Sachs also said that the return rate of US stock multi-head hedge funds so far this year is 8%, which is lower than the S&P 500 index's performance over the same period. By the close of US stocks on Friday, the S&P 500 had risen by about 11% during the year.
Goldman Sachs pointed out that in the past month, the 25% shorting effect had relatively little negative impact on the overall performance of hedge funds.
Editor/Jeffy