Here’s a chart from Bespoke Investment Group on institutional investors’ industry weight as reported on their 13Fs.
Just as the financials were the worst hit in this crisis, it is understandable why investors also chose to stock up on these stocks in their portfolios. While they may have carried (and still do) toxic assets, the value obliteration they’ve experienced within the past few months since Lehman fell in September gives the financial stocks a lot of room to the upside.
Here’s how their weights compared to that of the broader S&P500 index:
From this chart, it becomes more evident that institutional investors are overweight financials then materials, while mostly underweight tech and cons staples names.
Thanks to BIG for always providing excellent charts!