Citi Revealed Where Wall Street’s Big Players Are Investing

Quick overview

Citi analysts have released a “quick update” note based on equity sector flows, highlighting shifting preferences among institutional investors.

According to the report, long-only managers were net buyers last week, with a clear tilt toward Technology and Consumer Discretionary stocks, while reducing exposure to Consumer Staples.

Hedge funds also showed net buying activity, increasing their positions in Consumer Discretionary and Consumer Staples, but trimming holdings in Materials, Energy, and Communication Services.

“Over the past two months, long-only managers have been net sellers,” Citi noted, particularly of Health Care, Financials, and Consumer Staples, while increasing exposure to Real Estate, Communication Services, and Consumer Discretionary.

Looking at the broader picture over the past month, both long-only managers and hedge funds were overall net sellers, cutting back on Financials, Health Care, and Technology, but rotating into Industrials, Communication Services, and Materials.

Tech Outlook: The AI Trade Gets a Boost

Citi analysts also highlighted renewed momentum in the AI trade, citing the Trump administration’s decision to rescind the Artificial Intelligence Dissemination Framework as a key tailwind for the sector.

Their sector performance model shows that Tech’s relative returns over the past month resemble patterns typically seen in a “Goldilocks” environment — one that is particularly favorable to growth and innovation — while the more restrictive “tight financial conditions” regime remains the least correlated with current trends.

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Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

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