Bank of America’s latest client flow data reveal hedge funds engaging in their most substantial weekly US stock buying spree since 2008, signalling a discernible shift towards greater risk appetite amid market volatility.
Bank of America’s latest client flow data point to a sharp resurgence in risk appetite among hedge funds, with the group logging its largest weekly purchases of US equities since the firm’s records began in 2008.
According to the bank, hedge fund clients were net buyers of American stocks for a sixth straight week, even as institutional and retail investors trimmed exposure for a second consecutive week. The buying came during a strong stretch for markets, with the S&P 500 rising 3.6% in its best weekly performance since April.
The scale of hedge fund demand stood out even within the context of this year’s volatile trading patterns. Bank of America said the week ranked as the ninth-largest buying week for hedge funds on a 99th percentile basis when flows were adjusted for the S&P 500’s market capitalisation. The firm also noted that hedge fund clients have been consistently adding to US equities after a period earlier in the year when selling pressure dominated.
Exchange-traded funds continued to attract money, with equity ETFs taking in $4.1 billion for a seventh straight week of inflows. Single stocks, however, saw $2.4 billion of outflows for a second week, suggesting investors were still more selective beneath the surface of the broader market rebound.
Flows were not evenly spread across the market. Clients sold stocks in seven of the 11 sectors tracked by Bank of America, with industrials leading the outflows for a second week and communication services recording its largest withdrawals since December. Technology was a clear exception, drawing its second-largest weekly inflow on record. Consumer discretionary and consumer staples also remained in favour, extending their recent run of purchases.
The bank said investors preferred value and blend ETFs over growth funds, with growth products seeing their first weekly outflow in five weeks. ETF demand was broad-based across large-, mid- and small-cap categories, although technology ETFs were among the sectors that saw selling.
Corporate buybacks picked up from the previous week, but remained below their historical average once adjusted for market value, Bank of America said. On a year-to-date basis, annualised repurchases are still running below 2024’s record pace, though they remain above levels seen from 2016 through 2023.
The data underline a market in which hedge funds are becoming more aggressive buyers even as other client groups remain more cautious. That mix suggests conviction is improving, but not uniformly across investor classes or market segments.
- https://www.investing.com/news/stock-market-news/bofa-says-hedge-funds-had-biggest-buying-week-since-2008-last-week-93CH-4852596 – Please view link – unable to able to access data
- https://www.investing.com/news/stock-market-news/bofa-says-hedge-funds-had-biggest-buying-week-since-2008-last-week-93CH-4852596 – Bank of America reported that hedge fund clients were net buyers of U.S. equities for the sixth consecutive week, marking the largest buying week in the firm’s data history since 2008. This activity occurred during a week when the S&P 500 rose 3.6%, its best weekly performance since April. Equity exchange-traded funds attracted $4.1 billion in inflows during their seventh straight week of gains, while single stocks saw $2.4 billion in outflows for a second week. Hedge fund clients led the purchases with their ninth-largest buying week on a 99th percentile basis when adjusted for S&P 500 market capitalization. Institutional and retail clients sold equities for the second straight week. Clients sold single stocks across all size segments except small caps. When including ETFs, clients were net buyers of large-cap stocks. Corporate client buybacks increased last week but remained below the historical average for the fourth week of earnings season when normalized by market cap. Year-to-date annualized buybacks by clients are slightly below full-year 2025 levels and below 2024 records, but above levels seen from 2016 to 2023. Clients sold stocks in seven of 11 sectors, with Industrials leading outflows for the second consecutive week. Communication Services stocks posted their largest outflows since December. Technology saw its second-largest inflow week on record, representing the 97th percentile when normalized by S&P 500 Technology market cap. Consumer sectors attracted inflows for the sixth straight week for Discretionary and third straight week for Staples. In ETF flows, clients purchased Value and Blend ETFs while selling Growth ETFs for the first time in five weeks. Clients bought ETFs across all size segments including large, mid, small, and broad market categories. Clients sold ETFs in six of 11 sectors, led by Technology ETFs. Industrials ETFs attracted the largest inflows.
- https://www.investing.com/news/stock-market-news/bofa-clients-snap-5week-equity-selling-streak-led-by-hedge-fund-buying-4781410 – Bank of America clients were net buyers of U.S. equities last week for the first time in five weeks, snapping a month-long streak of outflows as hedge fund clients led the charge. Clients purchased a net $4 billion of U.S. stocks and equity ETFs in the week ended July 3. The buying was driven by both single stocks, which saw $3.1 billion in inflows, the largest since March, and equity ETFs, which added $1.0 billion. Hedge fund clients have now been net buyers for four consecutive weeks. Their four-week average net flows are at an all-time high in BofA’s data history dating back to 2008, and rank 15th-highest when normalized by S&P 500 market capitalization. Institutional and retail clients also bought equities on net last week. All three market-cap segments saw inflows, with small- and micro-cap stocks posting a record week. Meanwhile, corporate buybacks slowed for a sixth straight week, falling to their lowest level since February. Year-to-date, annualized buybacks are
- https://www.investing.com/news/stock-market-news/bofa-clients-extend-stock-buying-streak-led-by-private-and-institutional-investors-4024544 – Bank of America Securities reported that its clients bought $4.5 billion worth of U.S. stocks last week, marking the second consecutive week of inflows. Clients added exposure to both single stocks and exchange-traded funds (ETFs), with strong interest in large- and small-cap names, while mid-caps saw modest selling. Institutional and private clients were net buyers again, continuing the previous week’s trend. Hedge funds, by contrast, extended their selling streak to a fourth straight week. Year-to-date, hedge fund outflows are the largest on record for any comparable period since 2008. Private clients maintained a historic buying run, with inflows recorded for the 21st week in a row—the longest such streak in data going back to 2008.
- https://www.investing.com/news/stock-market-news/institutional-and-retail-clients-are-buying-the-dip-in-stocks-bofas-data-shows-4289882 – Institutional and retail investors stepped in to buy U.S. equities last week after a month of selling, according to new data from Bank of America. BofA said in a note this week that clients were
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The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article reports on recent data from Bank of America, indicating hedge funds’ largest weekly purchases of US equities since 2008. A search for similar narratives reveals that such reports are not uncommon, with similar data points appearing in previous years. For instance, in October 2023, BofA Securities reported significant inflows from hedge funds into US equities. ([serenitymarkets.com](https://serenitymarkets.com/wp-content/uploads/2023/10/BofA_BofA-Securities-Equity-Client-Flow-Trends-Clients-buy-the-dip_20231010.pdf?utm_source=openai)) This suggests that while the data is recent, similar trends have been reported in the past.
Quotes check
Score:
7
Notes:
The article includes specific figures and claims, such as hedge funds being net buyers of American stocks for a sixth straight week and the S&P 500 rising 3.6%. These figures are consistent with data from BofA Securities’ reports. ([serenitymarkets.com](https://serenitymarkets.com/wp-content/uploads/2023/10/BofA_BofA-Securities-Equity-Client-Flow-Trends-Clients-buy-the-dip_20231010.pdf?utm_source=openai)) However, without direct access to the original BofA report, it’s challenging to verify the exact wording and context of these claims.
Source reliability
Score:
9
Notes:
The article originates from Investing.com, a financial news platform that aggregates content from various sources. While Investing.com is generally considered reliable, it often republishes content from other outlets, which can sometimes lead to concerns about originality. The specific source of the data in this article is not clearly identified, which raises questions about its independence.
Plausibility check
Score:
8
Notes:
The claims about hedge funds’ significant purchases of US equities align with known market trends and previous reports from BofA Securities. However, the article lacks specific details, such as the exact dates of the reported week and the sectors involved, which makes it difficult to fully assess the plausibility of the claims.
Overall assessment
Verdict (FAIL, OPEN, PASS): REVIEW
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article reports on recent data from Bank of America regarding hedge funds’ significant purchases of US equities. While the claims are plausible and align with known market trends, the lack of direct access to the original BofA report and the absence of specific details in the article raise concerns about the accuracy and independence of the information presented. The reliance on secondary reporting and the absence of direct quotes or links to the original source warrant a more cautious approach before publishing.