CNBC- Jack Ablin, chief investment officer at Harris Private Bank, told CNBC’s “Power Lunch” that hedge funds may be driving today’s marketrally.

“We’re getting new money at quarter end, we’re seeing a lot of speculative issues leading the way, particularly small-cap, and at the same time, short interest in large cap is moving higher,” Ablin said Monday. “So, it could be a lot of hedge funds in today.”

He said difficulties in the sub-prime mortgage sector are still unfolding, and many adjustable rate mortgages haven’t yet been re-pegged to a higher rate.

“You certainly have to worry about it on the consumer side,” Ablin said. “Clearly, if people are failing to make payments on their homes, chances are they’ve already failed to make payments on their cars, credit cards and other expenses. Then (comes) the (fallout) into the hedge fund space (like) Bear Stearns. Is it an isolated event or is it a broader contagion?”

Ablin said he likes healthcare stocks because valuations are cheap. “Price-to-cash-flow is the cheapest it’s been in about 15 years,” he said.

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