Hedge Funds Buy $4.8B of US Stocks, Second-Biggest Week Since 2008
Hedge funds purchased $4.8 billion of US equities last week, marking the second-largest weekly inflow since 2008, while institutions turned net sellers after four weeks of buying.
Last week saw a stark divergence in US equity flows. Hedge funds stepped in with $4.8 billion of net buying, the second-largest weekly purchase since 2008 and the 24th-largest as a percentage of S&P 500 market cap on record, according to data cited by The Kobeissi Letter.
In contrast, institutional investors sold a net $3.8 billion, snapping a streak of four consecutive weeks of purchases. Their four-week moving average of inflows dropped to $3.9 billion.
Retail investors were modest sellers, offloading $200 million, which brings their four-week average net buying to $600 million. The data points to hedge funds aggressively adding exposure while other investor types take a breather.
Source: The Kobeissi Letter