Hedge funds exit consumer discretionary sector - Q2 HF Tracker data

Jonathan Boyd
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Hedge funds exit consumer discretionary sector - Q2 HF Tracker data

S&P Global Market Intelligence’s latest Hedge Fund Tracker Q2 2017 report points to a significant retrenchment from the consumer discretionary sector by pure play hedge funds, which overall trimmed their total number of equity positions over the period.

The Tracker, which aggregates analysis of hedge fund equity ownership, using so-called 13F filings made with the US Securities and Exchange Commission by such funds, says that the total equity positions declined from 427 to 423 over the quarter.

However, that relatively stable count masks significant turnover in holdings. The data suggests that hedge funds were net sellers in six out of 11 sectors in the S&P 500. There is also significant divergence found between strategies of hedge funds, with for example, Microsoft being both the most bought single stock among what the Tracker identifies as ‘top’ hedge funds, and also being the third most sold single stock.

Hedge funds sold some $3bn of consumer discretionary stocks in Q2, led by $1bn in sales of Nike stock.

Healthcare saw $1.4bn of sales and information technology some $1.1bn by large hedge funds.

Facebook was the most sold single stock, with some $1.5bn in sales in the quarter. Sales of Microsoft stock hit $1.5bn, Apple $1.2bn and Alphabet $1.1bn.

However, Microsoft was also the most bought stock, with some $1.3bn acquired over the quarter by other hedge funds.

To see further infographics of the hedge fund changes in the quarter, visit the Hedge Fund Tracker Q2 2017