Hedge funds fled healthcare stocks before the election - and may have missed out on big money
Hedge funds hopped out of healthcare ahead of the US presidential election - and may have missed on a big rebound in that sector in the wake of Donald Trump's win.
S&P Global Market Intelligence tracked hedge funds' stock holdings for the third quarter, which ended September 30, more than a week before the November 8 election.
The takeaway? Hedge funds "may have been just as surprised by the election as pollsters and psephologists," S&P says. The general thinking was that Hillary Clinton as president would have reformed drug pricing in a way that would have adversely affected the sector.
After Trump won, healthcare stocks bounced.
Healthcare was the biggest net sell for hedge funds, with energy following up.
Meanwhile, funds including Glenview Capital and Viking Global "pulled out significantly from Allergan, which was this quarter's top sell at $1.5 billion," the report said.
