In the fourth quarter of last year, hedge funds bought financial stocks in a bet that President Donald Trump's proposed tax reform and deregulation would benefit the industry.
However, traders are increasingly worried that tax reform may be delayed. Information technology has overtaken financial stocks as the best performer in the S&P 500 since the election.
Third Point returned just 5.9 percent in the first quarter, slightly below the S&P 500's return.
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