Despite the recent downturn hedge funds continue to prefer the highest beta sectors of the market. According to data from Goldman Sachs hedge funds maintain their largest net exposure to consumer discretionary, info tech, financials and a little bit of low beta via healthcare. Although there were no reported net short sectors hedge funds are most negative on utilities, industrials and consumer staples in terms of net long/short exposure.
(Right click for larger image)
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.