Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Hedge funds 'leaned more towards secular growth in January' - Jefferies

Published 31/03/2023, 05:36 am
Updated 31/03/2023, 05:36 am

By Sam Boughedda

Jefferies analysts said in a note to clients on Thursday that hedge funds leaned more towards secular growth in January.

"They increased weight to nearly 65% of portfolio, an OW of 21.8%, up from 17.1% last month," the analysts wrote, with the firm having assessed MSCI Hedge Fund data.

"Much of the increase in OW occurred in Tech, as it stood at 10% vs. 4.7% the previous month," they added. "Hedge Funds also bumped up their OW to Comm Services to 14% vs. 10.1% one month ago. As for Health Care, it moved from UW to OW, at 1.8%."

However, they revealed that the investors are slightly underweight towards the firm's Sweet 16, Jefferies' version of FAANG+, which includes names such as Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL), Meta Platforms (META), Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), Netflix (NASDAQ:NFLX), Tesla (NASDAQ:TSLA), and NVIDIA (NASDAQ:NVDA).

"We found that Hedge Funds were marginally UW this group, by just 1.2%. However, all of this is due to the net short position in AAPL. Over the last three months, these stocks have been slightly OW/UW by this investor base," they explained.

The analysts concluded: "As we moved through January, we found that Hedge Funds increased their Net Long position to 265%, which is above its long-term average. With this increase, we saw the Net Short position rise to -165%, hence the ratio stood at 1.6x."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.