Hedge funds are tilting towards Financials and reducing exposure in Technology, according to BAML’s analysis. This does not mean that technology has been removed from the top holdings, the conclusion is only comparative.
Exposure in the Energy sector was increased to some degree as well, while Healthcare stocks took a slice. The most sold stocks in the tech sector were Apple Inc. (NASDAQ:AAPL), Intel Corporation (NASDAQ:INTC), Hewlett-Packard Company (NYSE:HPQ), Citrix Systems, Inc. (NASDAQ:CTXS), and VMware, Inc. (NYSE:VMW). Overall holdings in the tech stocks were cut by 3.2 percent. The most favored stocks among financials were, American International Group, Inc. (NYSE:AIG), Capital One Financial Corp. (NYSE:COF), Citigroup Inc. (NYSE:C), Wells Fargo & Company (NYSE:WFC), and Nationstar Mortgage Holdings Inc (NYSE:NSM). Overall exposure in financials was increased by 3.3 percent.
On the other hand, the most bought stocks in the tech by market value were Google Inc (NASDAQ:GOOG), Visa Inc (NYSE:V), Yahoo! Inc. (NASDAQ:YHOO), and Equinix Inc (NASDAQ:EQIX). The most sold stocks in the financial sector by market value were, CME Group Inc (NASDAQ:CME), Fifth Third Bancorp (NASDAQ:FITB), KeyCorp (NYSE:KEY), and M&T Bank Corporation (NYSE:MTB).
In Financials, insurance, diversified financials services, and capital markets were of special interest to hedge funds. With respect to these categories, hedge funds have large positions in American International Group, Inc. (NYSE:AIG), ACE Limited (NYSE:ACE), JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C), State Street Corporation (NYSE:STT), and Invesco Ltd. (NYSE:IVZ).
In Technology, hedge fund favorites are Apple Inc. (NASDAQ:AAPL), Google Inc (NASDAQ:GOOG), Visa Inc (NYSE:V), Yahoo! Inc. (NASDAQ:YHOO), and QUALCOMM, Inc. (NASDAQ:QCOM).
In Consumer Discretionary, News Corp (NASDAQ:NWSA), Priceline.com Inc (NASDAQ:PCLN), Delphi Automotive PLC (NYSE:DLPH), Dollar General Corp. (NYSE:DG), and Liberty Media Corp (Capital) (NASDAQ:LMCA).
Priceline.com Inc (NASDAQ:PCLN) is bought and owned by Highbridge Capital Management, JAT Capital, Highline Capital Management, Jana Partners, Tiger Management, and Ivory Investment Management, Lone Pine Capital, Tiger Global, and Viking Global.
In Healthcare, the overweight stocks are Express Scripts Holding Company (NASDAQ:ESRX), Pfizer Inc. (NYSE:PFE), CIGNA Corporation (NYSE:CI), Humana Inc. (NYSE:HUM), and WellPoint, Inc. (NYSE:WLP).
Drawing from the holdings of 895 hedge funds, BAML’s analysis reports a significant new tilt towards Exchange Traded Funds; hedge funds’ total position in ETFs amounted to $35.9 billion at the end of Q3, which is up from $31.3 billion in Q2. The most owned ETFs are SPDR Gold Trust (ETF) (NYSEARCA:GLD), Vanguard MSCI Emerging Markets ETF (NYSEARCA:VWO), iShares MSCI Emerging Markets Indx (ETF) (NYSEARCA:EEM), Market Vectors Gold Miners ETF (NYSEARCA:GDX), and Vanguard Dividend Appreciation ETF (NYSEARCA:VIG).
Among the hedge funds we follow, Tudor Investment and Bridgewater Associates bought the iShares MSCI Emerging Markets Indx (ETF) (NYSEARCA:EEM) in Q3. Whereas, SPDR Gold Trust (ETF) (NYSEARCA:GLD) was bought or increased by Balestra Capital, Taconic Capital, and Soros Capital Management.
BAML also analyzed the core positions or the top 20 holdings of hedge funds, which usually make up 83.7 percent of the portfolio on average. The following table shows the most owned stocks in the top 20 holdings of 150 large hedge funds.
Stocks where the highest percentage of equity is held by hedge funds include, Harbinger Group Inc (NYSE:HRG), CVR Energy, Inc. (NYSE:CVI), Nationstar Mortgage Holdings Inc (NYSE:NSM), Ambient Corporation (NASDAQ:AMBT), and Federal-Mogul Corporation (NASDAQ:FDML).