GURU February 2019 Rebalance Report
Notable observations from this rebalance period include each of the following:
- GURU’s index, the Solactive Guru Index, has outperformed the S&P 500, GURU’s broad-market benchmark by 4.20% (420 bps) year to date through February 26th. GURU has been supported by strong selections in Industrials, Communication Services and Information Technology.
- GURU saw 3 net deletions in Real Estate, 3 net deletions in Communication Services and 2 net deletions in Industrials, potentially signaling fund profit-taking from those sectors.
- GURU saw 4 net additions in the Information Technology sector, whose underweight relative to the S&P 500 shrunk from 8.1% to 2.6% since the November 2018 rebalance, suggesting hedge funds may be warming up to technology stocks again after last year’s late sell off. Companies added are active in disruptive themes like FinTech, Autonomous Vehicles, Internet of Things, and Cloud Computing.
- GURU also saw 3 net additions in the Materials sector, which is now 5.5% overweight relative to the S&P 500 vs 0.3% overweight last quarter. Hedge funds may have identified an opportunity in the Materials sector.