Hedge Funds Are Finally Getting Out Of Stocks

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		Home Tech Finance Markets Politics Strategy Entertainment Advertising Retail Sports Life Tuesday, June 11, 2013 Hedge Funds Are Finally Getting Out Of Stocks Since Federal Reserve Chairman Ben Bernanke testified before Congress on May 22, failing to rebuff the suggestion that the central bank could begin tapering back bond purchases as soon as Labor Day (September 2), the U.S. stock market has experienced an unusual bout of weakness. Despite the volatility, hedge funds held on and continued to invest in equities, right up until last week, when they became sellers. These are the findings from BofA Merrill Lynch equity strategist Savita Subramanian's latest report, which details weekly flows based on what BAML clients are doing. Subramanian writes: Last week, during which the S&P 500 was up 0.8% amid a payrolls number that was largely in-line with expectations, BofAML clients were net sellers of US stocks for the second consecutive week. At $206mn, net sales were more muted than the prior week, when fears of the Fed tapering roiled the market. Hedge funds—who had previously been the only group exhibiting faith in the market rally with seven consecutive weeks of net buying—had the largest net sales last week. Institutional clients were also net sellers, while private clients were the sole net buyers in their second week of inflows. By size segment, small caps and mid caps saw outflows while large caps saw inflows. Year-to-date, cumulative outflows from US stocks total $10.8bn—nearly matching the $10.9bn of outflows for the full-year 2012 (see Table 1 inside), primarily due to net sales by institutional clients. The chart below shows the big reversal in hedge fund buying last week. Read » Also On Money Game Today: STOCKS TUMBLE AFTER EMERGING MARKETS ROUT: Here's What You Need To Know ANALYST: Two More Downgrades To The USA's Credit Rating Are On The Way, And They Could Surprise Markets Advertisement CHART OF THE DAY: Explaining The Complete And Utter Collapse Of Chinese 'Exports' To Hong Kong CHART OF THE DAY: THE SCARIEST JOBS CHART EVER CHART OF THE DAY: US Household Net Worth Just Hit An All-Time High Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: dwyld.kwu.jobhuntportal11@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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