Goldman’s David Kostin highlights how hedge funds, in aggregate, seem to have switched out of Tech and into Industrials during the fourth quarter of 2009 (latest data).
David Kostin @ Goldman: Hedge funds rotate into Industrials and out of Info Tech Hedge funds are underweight Information Technology for the first time since 2005 when comparing their net weighting with the Russell 3000. Hedge funds lifted their net weighting in Industrials to 9% from 6% during 4Q, the largest increase of any sector, but they remain net underweight.
Higher industrials exposure is clearly betting that we’re in a sustainable economic up-cycle right now.
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(Via Goldman Sachs, Hedge Fund Trend Monitor, David Kostin, 22 Feb 2010)