Hedge funds helped boost the S&P 500 to its best weekly return year to date last week by purchasing U.S. stocks. The index rallied 3.2% as hedge funds and other investors purchased the post-Brexit dip.

Also see top hedge fund letters

Hedge funds still buying stocks

Bank of America Merrill Lynch strategists Jill Carey Hall and Savita Subramanian said their firm’s clients bought $824 million worth of U.S. stocks last week to become net buyers after three consecutive weeks of net sales.

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They reminded investors that sales during the week of Brexit were “subdued” as a result of sentiment and positioning that were already negative. After analyzing last week’s flows data and combining it with data from Brexit week, they concluded that their firm’s clients bought the post-Brexit dip after selling for most of the weeks since January.


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