Americas Diversified Financials Positioning Analysis

This report analyzes 1Q26 institutional positioning in the Financials sector, noting a trend of mutual funds increasing weight in Insurance and Capital Markets while reducing Banks and Consumer Finance exposure. It highlights key hedge fund and mutual fund overweights and shorts, including data on concentrated positions like Visa, Mastercard, and Wells Fargo.

Key Takeaways

• 1.Mutual funds increased aggregate exposure to Financials in 1Q26, making it the second largest sector increase in the S&P 500.
• 2.Insurance and Capital Markets saw increased mutual fund overweight positions, while Banks and Consumer Finance saw reduced exposure.
• 3.Visa (V) and Mastercard (MA) remain popular long positions for both hedge funds and mutual funds.

Table of Contents

• High-Level Positioning Charts
• Aggregated Financials Positioning: Single Stock O/Ws and U/Ws
• HF Positioning: Popular longs: V, COF and MA; Most Shorted: ABR and UPST
• HF Positioning Snapshot: Top O/Ws: V, MA, COF; Popular shorts: BAC, AXP
• Components of financials and real estate in the S&P500 by GICS
• Disclosure Appendix