"For the most part, the big hedge funds have been mostly net sellers of stocks in recent quarters. And while it may seem ominous to have many smart money managers ringing the register this year, I'd argue that profit-taking and rotating capital into some of the more defensive areas of the market is only smart. Of course, taking a bit of capital off the risk-on AI trade for some cheaper, less-loved names comes with the risk of missing out on additional upside,"
"Whenever a blue-chip Dow Jones Industrial Average component implodes by more than 60% from peak to trough, such a move should have your attention if you're a value seeker. In recent months, shares of UnitedHealth Group have shown signs of settling, which has to be comforting for those who aren't big fans of catching falling knives. With a nice near-40% rally off July's multi-year depths, UnitedHealth Group stock may finally be at a turning point."
Many large hedge funds have been net sellers of stocks in recent quarters, driven by profit-taking and rotation into defensive market areas. Profit-taking away from risk-on AI positions into cheaper, less-loved names reduces immediate exposure but creates the risk of missing further AI-driven upside if the bull market strengthens. Opportunistic hedge fund buys can attract value investors sitting on cash seeking overlooked opportunities in an expensive market. UnitedHealth Group experienced a steep peak-to-trough decline of over 60% and has rallied nearly 40% from July lows, showing technical improvement but still meriting cautious, incremental buying.
Read at 24/7 Wall St.
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