Bloomberg – Once a quarter, Citigroup Inc. strategist Tobias Levkovich pulls a David Letterman and creates a Top 10 list of equity holdings at the biggest hedge funds and mutual funds.
The latest study could arguably be titled “Top 10 Reasons Your Alpha Has Disappeared” since it illuminates a shift in holdings that may lead to sixth straight quarter of equity hedge-fund returns that trail the Standard & Poor’s 500 Index.
The 50 biggest hedge funds loaded up on financial and energy stocks last quarter, according to the report, with both groups gaining 7 percentage points to represent 17 percent of the top holdings. Technology shares remained the biggest share, at 23 percent, while funds fled from the consumer shares that led the bull market by cutting holdings in half to 13 percent.
By comparison, if you own an index fund tracking the S&P 500, your weightings look like this: Financials at 16 percent, energy at 10 percent, technology at 19 percent and consumer-discretionary at 12 percent.
