June 18, 2021
Hedge fund managers are infatuated by the Communication Services sector, the Novus 4C Conviction index shows. We say "are infatuated by" rather than "love" because love stands the test of time and, as recently as May 2018, there was literally zero interest in the sector. But overnight it became the source of roughly one-third of hedge funds' exposure and has stuck to that plateau ever since.
Impressive results from such components as Sea Ltd. (NYSE:SE) and Alphabet (Nasdaq:GOOG) keep the relationship spicy.
Still, hedge fund managers have a wandering eye, and it might be casting its gaze at Financial Services next. Bank of America (NYSE:BAC) has garnered positive attention as read by the Consensus index.