The Worst S&P 500 Industry Is Also the Most Favored by Hedge Funds
- Fund exposure to health-care increases to highest since 2010
- RBC wary of crowding risk given growing political uncertainty
This article is for subscribers only.
Political risk has been rising for the health-care industry of late, but so is love for the group among hedge funds.
In a quarter when calls for drug pricing and "Medicare-for-All" grew louder, hedge funds raised their holdings in stocks from drugmakers to health insurers. At the end of March, their exposure increased to the highest since 2010, making the group the most crowded among 11 industries, regulatory filings compiled by RBC Capital Markets showed.