STOCKS | Hedge Funds and Institutions Return to Buying Stocks

U.S. stock fund inflows last week reached the sixth-highest weekly level on record since 2008. According to Sina Finance, Bank of America analyst Jill Carey Hall said the inflows were mainly driven by institutional clients and hedge funds, which have now been net buyers of stocks for a second straight week, while retail clients were net sellers for a sixth consecutive week. Hall said professional investors continued adding exposure near market highs despite warnings that equities often weaken seasonally after the summer. Of the 11 industry sectors, eight saw client buying, with technology leading the gains. Industrials was among the crowded, high-valuation sectors and saw fund outflows for a fifth straight week. Investors also bought major style ETFs spanning value, growth, and balanced strategies, while growth ETFs recorded net inflows for the first time in five weeks.