Hedge funds cut exposure to Semis, rotate into Cyclicals, says Goldman
Investing.com -- Hedge funds are on pace to end 2024 on a high, with US equity long/short strategies showing a 14% year-to-date return, Goldman Sachs revealed in a note. This is approximately double the average annual return over the past two decades.), remain the most favored long positions among hedge funds, though there was some rotation within the group during the recent quarter.
Earlier this year, funds had moved away from cyclical stocks in favor of defensive sectors. However, in the third quarter, they began incrementally rotating back toward cyclicals, increasing allocations toHealth care had the largest net sector weight entering the fourth quarter, accounting for 17% of total net exposure and holding a significant overweight position compared to the Russell 3000. In contrast, Information Technology remained the most underweight sector.
On a sector-neutral basis, hedge funds began 2024 with a record tilt toward Growth but pivoted sharply toward Value during the third quarter.
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