Hedge funds recorded net purchases of roughly $4.8 billion in US equities last week, the second-largest weekly inflow since 2008, according to market data from The Kobeissi Letter. Measured against the total market capitalization of the S&P 500, the buying ranks as the 24th highest on record, a sign that funds are rebuilding their exposure to American stocks.
Institutional investors, however, sold a net $3.8 billion in US equities over the same period, ending four consecutive weeks of buying. As a result, their average net buying over the past four weeks fell to $3.9 billion. Retail investors also trimmed positions, selling roughly $200 million, which brought their four-week average net purchases down to $600 million.
Market participants say hedge funds are rotating back into US equities after recent volatility, with capital flows shifting toward risk assets. The size of the buying could reflect growing confidence in corporate earnings, AI-driven growth, and the medium-to-long-term path of US stocks.