Marshall Wave’s Eureka hedge fund has loaded up on the bank and financial stocks after years of skipping out on value stocks, Bloomberg reported.
An investor letter indicated that the $24-billion Eureka hedge has accumulated value stocks and unloaded shares driven by central banks printing money in the past decade, prompted by possible interest rate hikes.
The latest figures indicate that the Eureka hedge fund is currently net long value and short on growth stocks for the first time in ten years since 2011. It is now banking on emerging stocks, such as those involved in insulin.
Marshall said the figures point to a shift in market leadership, pulling away from the beneficiaries of infinity-and-beyond-stimulus and driving them towards beneficiaries of higher interest rates.
Marshall did not disclose the stocks accumulated, but noted firms such as Bank of America Corp. and Wells Fargo & Co. BAC is down 0.20%, while WFC is down 0.21% premarket.