📝Hedge Funds Bought EU Banks, Sold U.S. Financials Last Week: UBS Strategy

Equity long/short funds bought back into the European banks (26bp) trade last week, and were heavy buyers of European Financials (68bp), driven by Long Buying. The story diverges with US and Asia, where funds sold out of Longs and added to Shorts in Banks, and sold Financials more broadly. This contrasts with US Retail Flow: retail investors were heavy buyers of U.S. banks last week.

At a regional level, US was net bought 33bp, whilst Europe (-11bp) and Asia (-246bp) were net sold. Selling in Asia was broad based (zero sectors bought in Asia) but the team continued to see strong outflows from Asia Materials. - UBS Strategy