- Credit Suisse
A new report shows which industries some of the world’s biggest hedge funds are investing in.
And the short version is that they’re betting on you, the consumer.
The world’s ten largest long/short equity funds are bullish on the consumer discretionary, industrials, and consumer staples sectors, according to eVestment, a research firm.
eVestment compiled baskets of the largest hedge funds in aggregate and by strategy, and analyzed those funds’ market exposures and risks.
“It really speaks to the perceived strength of the economy,” eVestment’s research head Peter Laurelli told Business Insider.
The research tallies with earlier observations from the likes of Credit Suisse, JPMorgan and Goldman Sachs.
According to a Credit Suisse note out in mid-May, hedge funds are betting on sectors like consumer services, household and personal products, and retailing.
JPMorgan in May noted that hedge funds were betting on “momentum driven technology and consumer discretionary names.”
Comcast, Alphabet and McDonald’s, which all fall in to that category, ranked as the three most popular hedge fund bets for companies with market capitalizations of at least $100 billion. Amazon, another company in that sector, ranked fifth.
The same companies scored highly in another ranking put together by Goldman Sachs showing the companies that were most important to hedge funds.