What External Hedge Funds Like and Dislike the Most

New York (HedgeCo.net) – We spend a considerable amount of time analyzing and reporting on what sectors the hedge funds on the HedgeCoVest platform like and don’t like. This past week, Credit Suisse released a report showing which sectors mutual funds, hedge funds and sell-side analysts like and dislike.

There were only two sectors where there was a consensus bullish reading among all three groups and those were large-cap food and staples retailing and small-cap software and services. Contrarily, there were three areas where there was a bearish consensus among the three groups and those sectors were small-cap household and personal products, large-cap energy and large-cap capital goods in the industrial sector.


There were a couple of industry groups where hedge funds were bullish and the sell-side analysts and mutual funds were either bearish or neutral. One area where this was the case was in the consumer services industry in the consumer discretionary sector where hedge funds were bullish on both large and small-cap stocks in the group. Another area where hedge funds were bullish was in small-cap energy stocks.

Hedge funds also like small-cap retailing stocks within the consumer discretionary sector and small-cap tech. hardware and equipment stocks within the tech sector. Large-cap diversified financial stocks are another area where hedge funds are bullish while the other two groups are neutral. Hedge funds are also bullish on materials stocks while sell-side analysts are neutral and mutual funds are bearish.

In terms of industries that hedge funds are bearish toward whereas sell-side analysts and mutual funds are either bullish or neutral, there are two. The auto and components industry within the consumer discretionary sector, both large and small-cap, and large-cap biotech, pharma and life sciences.

Rick Pendergraft
Research Analyst

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