Below we highlight the cumulative sector weights of hedge funds based on their first quarter 13Fs (from Bloomberg). As shown in the table below, Financials make up the biggest portion of hedge fund portfolios, just as they do in the S&P 500. Energy ranks second, Technology third, and Industrials fourth.
In the first chart below, we highlight the changes in holdings in the first quarter versus the fourth quarter of 2007. Hedge funds increased their weight in Energy the most and decreased their weight in Technology the most. Tech was one of the worst performing sectors in Q1, but it has been one of the best performers so far this quarter.
Comparing hedge fund weightings to the S&P 500, hedge funds are most overweight in the Materials sector and the most underweight in the Consumer Staples sector.
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