Forget FANGs, Lay Off Drugs. Industrials Are the New Big Trade
- That’s what RBC decides after studying hedge fund filings
- Bets paying off as industrial stocks rebound most from 4Q rout
This article is for subscribers only.
Never mind the FANG block of internet giants. Never mind drugmakers or biotechs. The smart money’s new obsession is the old economy: industrial stocks.
So says RBC Capital Markets after studying quarterly filings of more than 300 hedge funds. By aggregating their holdings in each sector and comparing them to the market over time, strategists led by Lori Calvasina found that machinery and equipment makers have the “most crowding risk.” That’s because fund managers have earmarked more money to the group than their representation in benchmarks with ownership swelling past historic norms.