According to analysts at goldman sachs, Donald Trump winning the presidential election has led hedge funds to shift their holdings in stocks towards the financial and other cyclical industries. In a report on November 22, goldman sachs analyst David Kostin stated, "Hedge funds have reduced their net hold positions in medical care, consumer staples, and real estate, while increasing their shareholding in financial stocks to the highest level in at least 15 years."

The company's basket of "cyclical vs. defensive stock pairs" portfolio rose 6% on November 6, the second day after the election. This is the largest single-day surge in cyclicals since the World Health Organization declared the new crown epidemic in March 2020.

Financial stocks$Everest Group (EG.US)$、$Intercontinental Exchange (ICE.US)$、$Rithm Capital (RITM.US)$ 、$Raymond James Financial (RJF.US)$ and $WR Berkley (WRB.US)$ All are on Goldman Sachs' list of "new stars" for hedge fund popularity this quarter.$Discover Financial Services (DFS.US)$And.$PayPal (PYPL.US)$Became a new member of the goldman sachs "hedge fund VIP" list.

Regarding the stocks that are bullish on both hedge funds and mutual funds, goldman sachs' list includes building materials companies. $CRH PLC (CRH.US)$ , trading processing companies.$Fiserv (FI.US)$, payment companies.$MasterCard (MA.US)$, insurance companies.$Progressive (PGR.US)$Audio streaming services $Spotify Technology (SPOT.US)$ Payment companies$Visa (V.US)$and datacenter equipment manufacturers$Vertiv Holdings (VRT.US)$。

Recently, Wall Street analysts have been focusing on predicting the potential impact of a Trump victory on bank stocks. Analysts believe that the main expectation is that regulations will be relaxed, a reduction in antitrust scrutiny may promote M&A activity, and the prospect of high tariffs is expected to lead to higher terminal interest rates.

Citigroup analyst Keith Horowitz wrote in a report to clients that the three key risks of regulation, interest rates, and crediting are all showing a "green light". The new government is also expected to create a more friendly environment for acquisitions.

Morgan Stanley analysts are also bullish on financial stocks, listing a portfolio of stocks rated as 'shareholding'. Due to reduced risks during the earnings season, accelerated capital market activities, attractive valuations, and positions, the analyst at the firm upgraded the rating on financial stocks to shareholding at the beginning of October. In addition, another reason for the strong performance of financial stocks inferred by the firm is the upward revision of profit expectations, with expectations of relaxed regulations following the recent presidential election results driving the sector's performance.

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