LONDON - Hedge funds sold industrial stocks at the fastest pace since December, while buying energy stocks for the fourth straight week last week, a Goldman Sachs note seen by Reuters on Monday showed.
"Global growth will be better than expected if the Fed manages to engineer a soft landing and that's probably why these traders are making the switch," said Paul O'Neill chief investment officer at wealth management firm, Bentley Reid. These speculators now hold the highest proportion of energy stocks they've had all year, said the bank note.Investors told Reuters in late July that hedge funds betting that former President Donald Trump will regain the White House in the November election had increased exposure to energy companies, which they believe could benefit from a looser regulatory environment.