Are hedge funds really warming up to equities again or are they just playing the only game in town? After cutting their exposure to equities by nearly 7% in the first quarter of this year, the top 50 hedge funds added some 0.3% to their equities exposure in the second quarter. Consumer discretionary and consumer staples were the big winners in the quarter, while financials and health care stocks led the losing sectors.
Netflix Inc. (NASDAQ: NFLX) and Apple Inc. (NASDAQ: AAPL) accounted for $2.0 billion and $1.8 billion, respectively, of hedge funds’ sales in the second quarter. Viking Global Investors cut its stake in Netflix by 22%, and Tiger Global sold its entire 4.2% stake (valued at $1.6 billion) in the streaming video company.
The most widely held stocks among the top 50 funds are Microsoft Corp. (NASDAQ: MSFT) and Facebook Inc. (NASDAQ: FB), which appear in the portfolios of 25 of the funds.
The top 50 hedge funds purchased a total of $2.2 billion in equities in the second quarter, a massive change from the overall sale of $55 billion in U.S. equities in the first quarter.
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