, Columnists
Hedge Funds’ Shift to Health Care May Be a Hedge Too Far
The switch from tech seems premature in an economy that’s still growing.
The economy isn’t ailing yet.
Photograph: AFP/Getty Images
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It’s not quite the big short, but the latest outsized bet by hedge funds suggests the highly paid managers are worried that the economy’s good health may falter soon.
Hedge funds, which until recently have been overweight technology stocks, particularly the popular FANG members, in addition to the consumer discretionary sector, have shifted their assets into health care. It’s typically a sector that’s less sensitive to moves in the economy than, say, tech or consumer discretionary, and it’s a place investors turn to for protection when they are worried the market might head south.