Goldman Sachs: Hedge Funds in Defense Mode. HealthCare sector with the largest net inflow for the last 11m.

According to information from Goldman Sachs Prime Brokerage – hedge funds are buying protection.
-Healthcare recorded its largest net purchases for the last 11 months.
-Concentration to the US as they begin to reduce their global holdings after four months of purchases.
-This Defense move comes after a sharp reversal in market direction – an aggressive decline in April, after a strong Q1. – Worries about the US economy, consumer sentiment, persistent inflation and cautious guidance from companies in Corporate America weigh on sentiment.

Hedge funds are becoming increasingly cautious as geopolitical uncertainty, holding US interest rates and April’s market decline have prompted professional investors to limit risk in their portfolios.

Positioning data from Goldman Sachs’ Prime Brokerage division shows that hedge funds have increased their defense exposures at the fastest pace in the past 8 months. /which coincides with the bottom of Wall Street’s last bear market/
-The Healthcare sector attracts the largest volume of hedge funds, while the Consumer Discretionary sector reports the largest outflow.
-The healthcare sector trades at an average P/E of 18.6, making it look cheap compared to growth sectors such as technology, which trade at a P/E ratio of 27.6.