Hedge Funds Exit Energy, Consumer Discretionary, and Healthcare in Q4, S&P Global Market Intelligence Quarterly Hedge Fund Tracker Finds

New York - 16 February 2017

Top Funds Sell off Amazon, The Williams Companies, AB InBev

S&P Global Market Intelligence, a leading provider of multi-asset class research data and insights, today released its review of  Q4 2016 13F filings by pure play hedge funds. The quarterly S&P Global Market Intelligence Hedge Fund Tracker is an aggregate analysis of hedge fund equity ownership that highlights hedge fund investments in specific stocks and sectors.

The latest Hedge Fund Tracker analysis shows the top funds managed approximately $153 billion in equity holdings, an increase from the $145 billion under management in Q3. However, because these funds saw a slight drop in the total number of positions to 420 from 424 in Q3, the increase in assets under management is more than likely due to the end-of-year equity market rally.

“For the biggest hedge funds, Q4 was a little less volatile than previous quarters,” said Pavle Sabic, Head of Market Development, S&P Global Market Intelligence. “There was another sell off in healthcare stocks, reflecting the overall uncertainty in that sector, and buys into financials, info tech, and industrials. But the overall amount of assets these funds manage didn’t change all that much. Perhaps they are in a ‘wait and see’ period as they attempt to gain a greater sense of where the markets are headed.”

Following is a summary of findings in the Q4 2016 Hedge Fund Tracker:

  • Sell-Off in Energy, Consumer Discretionary, and Healthcare: Top funds dropped their holdings of energy (-$2.695 billion), consumer discretionary (-$2.333 billion), and healthcare (-$1.218 billion). Materials (-$568 million), utilities (-$361 million), and telecom services (-$119 million) were also sold off.
  • Amazon is Most-Sold Stock: Amazon (-$1.022 billion), The Williams Companies, Inc. (-$910 million), AB InBev (-$902 million), Teva Pharmaceuticals (-$875 million), and Allergan (-$786 million) were the most sold off among the top funds, reflecting decreases and exited positions
  • Financials, Info Tech See Buying Activity: Top funds increased their holdings of financials (+$1.221 billion), info tech (+$1.213 billion), and industrials (+$1.126 billion). Real estate (+$546 million) and consumer staples (+$499 million) were also bought
  • Dow, Deere, and Visa Among Most Bought Stocks: Dow Chemical (+1.239 billion), Deere & Company ($874 million), Visa (+$834 million), Bank of America ($752 million), and Walgreens Boots Alliance ($+705 million) were the most bought stocks for the top funds, reflecting increases and new positions
  • Increase in AUM: Top funds managed about $153 billion, up about $8 billion from Q3, but this is most likely due to an equity rally.
  • Viking Global Amasses Largest Equity Holdings Among Hedge Funds: The top hedge fund, as measured by equity assets, was Viking Global with about $24,149.6 billion, and it held 63 stocks. Meanwhile, Gardener Russo & Gardener held 93 positions and had $11,681.7 billion in assets under management.

S&P Global Market Intelligence analyzes the latest quarterly 13F filings* to determine the top ten largest hedge funds based on reported equity assets. Further analysis isolates the universe to pure-play hedge funds that focus on stock picks and hones that universe further to isolate the hedge funds that overweight their biggest investments by capping the number of stocks held at 100.  S&P Global Market Intelligence performs this research quarterly in order to understand what the most prominent hedge funds are buying, holding and selling.  The firm develops the analysis through an examination of both industry filings as well as Excel-based holding models, allowing clients to quickly spot global trends in asset category and understand what some of the largest investors buying, selling and holding.

S&P Global Market Intelligence also provides rankings on approximately 1,100 equity and fixed income ETFs based on performance, risk and cost factors, including holdings-level analysis and expenses.

At S&P Global Market Intelligence, we know that accurate, deep, and insightful data is vital. We integrate financial and industry data, research and news into tools that help track performance, generate alpha, identify investment ideas, understand competitive and industry dynamics, perform valuation and assess credit risk. Investment professionals, government agencies, corporations and universities globally can gain the intelligence essential to making business and financial decisions with conviction.

S&P Global Market Intelligence is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies and governments to make decisions with confidence. 

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