Stephen Mandel of Lone Pine Capital had an active final quarter of the year, selling out completely of pharmaceutical group Allergan and Lloyds Banking Group, positions worth $775 million and $903 million respectively. He also ditched $1 billion in Next shares.
"Overall the financial sector was the most sold amongst the hedge funds, Lloyds Banking Group being one of the most sold with $903 million. Perhaps this 13F (the form fund managers file with the SEC) analyses shows some insights into the belief of hedge funds that financial stocks would suffer going forward?" said head of market development for corporates at S&P Global Market Intelligence, Pavle Sabic.
"For example, from January 4th to February 15th 2016, the S&P 500 index fell 7.5 percent while the index of bank stocks fell 16 percent. Over the same period, the FTSE Eurofirst 300 fell 9.5 percent, while the index of bank stocks fell 19 percent. However, some contrarian investing has occurred with American International Group being number one bought stock with $2.5 billion mainly bought by Icahn Capital," he added.