LIVE MARKETS-Fund managers boost communication services, materials; trim financials

Reuters
Oct 22
LIVE MARKETS-Fund managers boost communication services, materials; trim financials

U.S. stocks mixed, Dow leads

Consumer discretionary tops sector gains, comm. services lags most

Euro STOXX 600 closes up 0.2%

Dollar, crude rise, bitcoin up >1%

Silver slides 7.8%, gold off 5.8%

U.S. 10-Year Treasury yield falls to ~3.96%

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FUND MANAGERS BOOST COMMUNICATION SERVICES, MATERIALS; TRIM FINANCIALS

Long-only investors increased their exposure to communication services and materials stocks in October, while cutting back on consumer discretionary, financials and industrials, according to an Evercore ISI survey of equity fund managers.

The percentage of equity managers who said they were "overweight" on the communications services sector increased to 16% in October versus 12% last month, though net positions still remained 40% in "underweight" category, survey data showed.

Investors who responded overweight utilities stood at 15%, up from 12% last month, though underweight positions also increased to 61% from 58% last month.

Sectors that saw a decrease in overweight positions include industrials and financials (down to 38% from 41% each), energy (down to 33% from 36%) and consumer discretionary (down to 24% from 27%).

Over 50% of fund managers said they were overweight on healthcare - the highest of the lot, while 61% were underweight on utilities - the most among the 11 major sectors.

Hedge fund managers were also bullish on the healthcare sector, with 57% of the survey respondents saying they are "longer" on the sector, up from 50% seen last month.

The sector that fell the most out of favor among hedge funds in October versus last month was financials, with long positions falling to 31% from 38% in October.

(Shashwat Chauhan)

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