For every two U.S. consumer staples stocks that hedge funds have shorted, they have bought one, Goldman Sachs said.
U.S. companies ranging from supermarkets to beer have been under pressure on concerns about the impact of weight-loss drugs like Ozempic, Wegovy and Mounjaro.
Shares in the U.S. consumer staples sector (.SPLRCS) are down roughly 8% this year, which some investors see as an overreaction to the new weight-loss drugs.
"Consumer staples has been ignored and beaten up," said Bryant VanCronkhite, equities senior portfolio manager at Allspring Global Investments LLC.
PORTFOLIO ROTATIONEuropean hedge funds have bought defensive stocks in October, while selling cyclicals, according to Goldman Sachs.
Persons:
Goldman Sachs, Bryant, Carolina Mandl, Sharon Singleton, Leslie Adler
Organizations:
Allspring Global Investments, Thomson
Locations:
Europe, U.S, Israel, United States, Norway, Denmark, Germany, defensives, New York