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Quarterly Hedge Fund Tracker – Q3 2016

November 17, 2016    //   By Pavle Sabic

HEDGE FUNDS CONTINUE TO LOSE FAITH IN STOCKS

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This quarter’s Hedge Fund Tracker shows that the top funds managed approximately $145 billion in equity holdings, down from the $150 billion under management in Q2, and down more than $50 billion from the highs reached in 2015. 8 out of 11 S&P 500 sectors were net sells, while the limited sector buys were down significantly from the usual $1 billion mark. For example, Industrial’s led this quarter’s top sector buy with a meager $407 million, far below anything we saw in 2015.

This quarter also shows that hedge funds may have been just as surprised by the election as pollsters and psephologists. The healthcare industry saw the largest net sell, indicating a possible expectation that former Secretary of State Hillary Clinton’s promised healthcare reforms would adversely affect the sector. Both Glenview Capital and Viking Global pulled out significantly from Allergan, which was this quarter’s top sell at $1.5 billion.

Despite being a net sell at $335 million, Information Technology saw this quarter’s top buy, with Lone Pine making a brand new position in eBay at $998 million. This sector could be adversely affected if the FCC adapts its stance on net neutrality during the Trump Administration. However, if repatriation taxes drop from 35% to 10%, as promised by the President-elect, Tech companies that have significant overseas income could benefit.

Read the Q3 2016 report.

Hear from the author

Join us for a webinar on Wednesday, November 30th at 11:00am for a look into our Q3’16 Hedge Fund Tracker, including methodology, ongoing trends and this quarter’s findings. Plus, we will review other essential market data IR professionals should monitor on a quarterly, monthly and daily basis to confidently navigate the competitive landscape. Register now.

Revisit the Hedge Fund Tracker from previous quarters

Q2 2016
Q1 2016
Q4 2015
Q3 2015