{"id":9759,"date":"2023-04-13T21:37:39","date_gmt":"2023-04-13T21:37:39","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/hedge-funds-bought-financial\/"},"modified":"2023-04-13T21:39:26","modified_gmt":"2023-04-13T21:39:26","slug":"hedge-funds-bought-financial","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/hedge-funds-bought-financial\/","title":{"rendered":"Hedge funds bought financial stocks amid banking turmoil, says S&P"},"content":{"rendered":"

By Carolina Mandl<\/p>\n

NEW YORK (Reuters) – Hedge funds increased their exposure to stocks in the financial sector amid the banking turmoil in March, as they saw a buying opportunity at lower prices, S&P Global Market Intelligence said in a note on Thursday.<\/p>\n

“Hedge funds used the bank stress as an early buying opportunity, dismissing speculation that a significant crisis was at play,” S&P said, adding the firms boosted their exposure to financials by 5.5%, after having reduced it by 3.9% in February. Retail investors also increased their bets by 1%.<\/p>\n

Hedge funds raised their exposure to financials more than any other sector, according to S&P, which tracks assets listed in the U.S.. Hedge funds added $13.5 billion in stocks in all sectors in March.<\/p>\n

Hedge funds’ positioning in the banking sector came in a month when U.S. banks Silicon Valley Bank and Signature Bank failed, followed by Credit Suisse’s rescue.<\/p>\n

“The group saw an opportunity to pick up banking names at a significant decline and, in order to do so, sold down holdings in the better-performing materials and energy sectors,” Christopher Blake, executive director of S&P Global Issuer Solutions wrote.<\/p>\n

Citadel, one of the world’s most profitable hedge funds, said in March in a regulatory filing it bought a 5.3% stake in Western Alliance Bancorporation, which was seen as a sign of confidence in the battered sector.<\/p>\n

Traditional asset managers, another group of investors tracked by S&P, cut their positioning in financials by 1.1% and also slashed $20.2 billion in equities stakes across other sectors.<\/p>\n

Overall, the financials sector has not recovered from the losses. The KBW Bank Index and the S&P 500 Banks Index are down 18.6% and 12.9% year to date, respectively, and both are roughly flat in April. <\/p>\n

\n

(Reporting by Carolina Mandl in New York; Editing by Sonali Paul)<\/p>\n

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By Carolina Mandl NEW YORK (Reuters) – Hedge funds increased their exposure to stocks in the financial sector amid the banking turmoil in March, as they saw a buying opportunity at lower prices, S&P Global Market Intelligence said in a note on Thursday. “Hedge funds used the bank stress as an early buying opportunity, dismissing […]<\/p>\n","protected":false},"author":8,"featured_media":9760,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[],"class_list":["post-9759","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3C0VP-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/9759","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=9759"}],"version-history":[{"count":1,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/9759\/revisions"}],"predecessor-version":[{"id":9761,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/9759\/revisions\/9761"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/9760"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=9759"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=9759"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=9759"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}