Latest news with #FlorianIelpo
Mint
2 days ago
- Business
- Mint
Hedge funds ditch tech and buy essentials, Goldman Sachs says
LONDON, July 28 (Reuters) - Hedge funds fled technology stocks at the fastest pace in 12 months in the latest week, just as the S&P 500 reached all-time highs, a note to Goldman Sachs clients and seen by Reuters said. The S&P 500, which includes seven tech stocks in its top 10 largest constituents by market value, has surged roughly 28% since its 2025 low, while the Nasdaq Composite has jumped 38% in that time. As of Friday, the S&P 500's forward price to earnings ratio, which reflects the value of a company's stock relative to its projected future earnings, was 23.11, around five-month highs, according to LSEG/Datastream. "U.S. equities valuations (such as price earnings ratios) are now 30% higher than their recent decade average, while 10-year yields remain stubbornly high and volatile. The future path of equities may depend partly on a decline in long-term rates; however, we do not seem to be there yet," Lombard Odier Investment Managers head of macro Florian Ielpo said in a note on Friday. Globally, hedge funds sold tech stocks, some of the most richly valued equities, more than any other sector last week, the Goldman Sachs note said. Rather than shorting the sector, hedge funds tended to ditch long bets and exit trades, the bank said. A short bet is designed to profit from a drop in an asset price. This week's exodus was the largest the bank had seen since July 2024, Goldman Sachs said. Hedge funds fleeing tech stocks centered on trading in North America and Europe. Every kind of tech stock was sold, including semiconductor chip companies, as well as those in software and IT services, the bank said. Meanwhile, shares in consumer staples - companies that sell items that people purchase regardless of economic conditions - were among the most net bought U.S. stock sectors this week, Goldman said. Hedge funds piled into these stocks for the fourth straight week and their trades were almost entirely long positions - those that will profit if the stock prices rise. The kind of companies whose shares hedge funds bought included those that sell food and beverages and personal care products. (Reporting by Nell Mackenzie; Editing by Amanda Cooper and Alison Williams)
Yahoo
2 days ago
- Business
- Yahoo
Hedge funds ditch tech and buy essentials, Goldman Sachs says
By Nell Mackenzie LONDON (Reuters) -Hedge funds fled technology stocks at the fastest pace in 12 months in the latest week, just as the S&P 500 reached all-time highs, a note to Goldman Sachs clients and seen by Reuters said. The S&P 500, which includes seven tech stocks in its top 10 largest constituents by market value, has surged roughly 28% since its 2025 low, while the Nasdaq Composite has jumped 38% in that time. As of Friday, the S&P 500's forward price to earnings ratio, which reflects the value of a company's stock relative to its projected future earnings, was 23.11, around five-month highs, according to LSEG/Datastream. "U.S. equities valuations (such as price earnings ratios) are now 30% higher than their recent decade average, while 10-year yields remain stubbornly high and volatile. The future path of equities may depend partly on a decline in long-term rates; however, we do not seem to be there yet," Lombard Odier Investment Managers head of macro Florian Ielpo said in a note on Friday. Globally, hedge funds sold tech stocks, some of the most richly valued equities, more than any other sector last week, the Goldman Sachs note said. Rather than shorting the sector, hedge funds tended to ditch long bets and exit trades, the bank said. A short bet is designed to profit from a drop in an asset price. This week's exodus was the largest the bank had seen since July 2024, Goldman Sachs said. Hedge funds fleeing tech stocks centered on trading in North America and Europe. Every kind of tech stock was sold, including semiconductor chip companies, as well as those in software and IT services, the bank said. Meanwhile, shares in consumer staples - companies that sell items that people purchase regardless of economic conditions - were among the most net bought U.S. stock sectors this week, Goldman said. Hedge funds piled into these stocks for the fourth straight week and their trades were almost entirely long positions - those that will profit if the stock prices rise. The kind of companies whose shares hedge funds bought included those that sell food and beverages and personal care products.
Reuters
2 days ago
- Business
- Reuters
HEDGE FLOW Hedge funds ditch tech and buy essentials, Goldman Sachs says
LONDON, July 28 (Reuters) - Hedge funds fled technology stocks at the fastest pace in 12 months in the latest week, just as the S&P 500 (.SPX), opens new tab reached all-time highs, a note to Goldman Sachs (GS.N), opens new tab clients and seen by Reuters said. The S&P 500, which includes seven tech stocks in its top 10 largest constituents by market value, has surged roughly 28% since its 2025 low, while the Nasdaq Composite (.IXIC), opens new tab has jumped 38% in that time. As of Friday, the S&P 500's forward price to earnings ratio, which reflects the value of a company's stock relative to its projected future earnings, was 23.11, around five-month highs, according to LSEG/Datastream. "U.S. equities valuations (such as price earnings ratios) are now 30% higher than their recent decade average, while 10-year yields remain stubbornly high and volatile. The future path of equities may depend partly on a decline in long-term rates; however, we do not seem to be there yet," Lombard Odier Investment Managers head of macro Florian Ielpo said in a note on Friday. Globally, hedge funds sold tech stocks, some of the most richly valued equities, more than any other sector last week, the Goldman Sachs note said. Rather than shorting the sector, hedge funds tended to ditch long bets and exit trades, the bank said. A short bet is designed to profit from a drop in an asset price. This week's exodus was the largest the bank had seen since July 2024, Goldman Sachs said. Hedge funds fleeing tech stocks centered on trading in North America and Europe. Every kind of tech stock was sold, including semiconductor chip companies, as well as those in software and IT services, the bank said. Meanwhile, shares in consumer staples - companies that sell items that people purchase regardless of economic conditions - were among the most net bought U.S. stock sectors this week, Goldman said. Hedge funds piled into these stocks for the fourth straight week and their trades were almost entirely long positions - those that will profit if the stock prices rise. The kind of companies whose shares hedge funds bought included those that sell food and beverages and personal care products.
Bloomberg
04-06-2025
- Business
- Bloomberg
The Bull Market Is Being Powered by Stocks Outside the US
The never-ending back and forth on tariffs. An escalating war in Ukraine. Growing concern about the US's mounting debt and deficits, and a congressional budget process that seems unlikely address the problem. Sounds like a recipe for a bear market, and yet global stocks just hit an all-time high. The MSCI All-Country World Index is up 5.6% this year, surpassing its record from February. 'The trade tariff drama is now increasingly seen for what it is: a massive trade uncertainty rather than a trade crash,'' said Florian Ielpo at Lombard Odier Investment Managers. 'Looking beyond this white noise, markets are now focusing again on the present situation, which is actually not too bad.'
Bloomberg
13-03-2025
- Business
- Bloomberg
'Rotation Not Recession,' Lombard Odier's Ielpo Says
Lombard Odier's head of macro research Florian Ielpo discusses market moves as uncertainty around the outlook for the American economy grows. "At the moment, where we see the situation is rotation, not recession," Ielpo tells Bloomberg Television. (Source: Bloomberg)
