Odaily Planet Daily report: Market data shows that hedge funds net purchased approximately $4.8 billion in U.S. equities last week, marking the second-largest weekly buying volume since 2008. Measured by the weight of the S&P 500 Index’s total market capitalization, this buying volume ranks as the 24th highest on record, indicating that hedge funds are increasingly increasing their allocation to U.S. stocks.
Meanwhile, institutional investors net sold approximately $3.8 billion in U.S. equities last week, ending a four-week streak of net purchases. As a result, the four-week average net purchase by institutional investors declined to $3.9 billion. Retail investors slightly reduced their holdings by about $200 million in U.S. equities during the same period, bringing their four-week average net purchase down to $600 million.
Market participants note that, following previous market volatility, hedge funds are returning to U.S. equities, with a growing trend toward reallocating capital toward risk assets. The large-scale buying by hedge funds may reflect renewed investor confidence in corporate earnings, AI-driven growth, and the medium- to long-term trajectory of U.S. stocks. (The Kobeissi Letter)