Portfolio holdings data provides insight into managers’ sentiment toward individual securities and sectors. Comparing positions and exposures at the universe level provides both investors and managers a better understanding of how their investments differ from their peers, to what degree they differ and in what ways their portfolios have changed over time.
Q2 hedge fund letters, conference, scoops etc
Key Trends:
U.S. SMID cap managers decrease weighting to technology
U.S. SMID cap managers across core, growth and value decreased their weighting to the technology sector relative to their respective benchmarks in Q2 2019. Despite the decline, SMID growth and value managers continue to be overweight +2.21% and +1.64%, respectively. SMID cap core strategies are underweight tech by -2.47% against the Russell 2500 through the quarter. Advanced Micro Devices is one of the most underweight companies in the sector, followed by information technology names including Twilio and Tableau Software.
Global all cap managers overweight exchanges
Global all cap managers across the style spectrum added to their financial services exposure, both in absolute terms and relative to the MSCI ACWI in Q2 2019. Sub-sector preferences differ by investment style with core managers most overweight insurance (+2.86% versus the MSCI ACWI), growth managers consumer finance & credit (+1.02%) and value managers investment banking & brokerage (+1.21%). Managers of all styles are overweight the securities brokerage & services industry through 2Q’19 with CME, ICE and London Stock Exchange among the most favored firms.
EM all cap managers bullish Indonesian & Indian banks
EM all cap strategies’ weighting to financials increased from 26.47% to 31.80% Q/Q, moving from underweight by -0.95% against the MSCI ACWI to overweight +3.53%. EM managers are most bullish on Indonesian and Indian banks including Bank Rakyat Indonesia, Bank Mandiri, HDFC and Kotak Mahindra, each overweight by at least +55 bps against the benchmark through Q2 2019. While banks and consumer lending co.’s drove much of the increasing exposure in financials, managers are underweight Axis Bank and Bajaj Finance in India and Chinese banks broadly.
U.S. Large Cap Sector Overview
Q2 2019 Absolute Sector Weights and Weights Relative to Benchmark
Article by eVestment
