Halfway through the month of June and the risk on Consumer Discretionary trade is clearly reflected in the flow that we have seen. With countries continuing to unravel their lockdown measures, and shoppers back out pounding the high street, it is no surprising that we have seen such a marked uptick.
As we start a fresh month, here we take a look back at which sectors garnered the most interest in terms of flow in May. The green shoots of the recovery continue to flourish, with a late pick up last month in buying interest amongst the apparel names. Elsewhere, Food & Beverage had a quieter month than April, while Cap Goods remains a key focus for both Hedge Funds and Institutions. It was also very exciting to see a small uptick in interest around the Banks again from Hedge Funds.
Halfway through the month of May, we are starting to see divergence from previous sector interest as more relaxed lockdown measures have seen green shoots of opportunity emerge. Cap Goods overall remains the busiest sector for Redburn flow, however a significant increase in Institutional buying interest of Chemicals has seen the space come in a close second. Banks remain quiet for Hedge Funds, who have focussed more of their time on selling Chemical names and Semis. General Retail has been better bid by the Hedge Funds, while for Institutions we have seen decent buying interest in Industrial Services and Utilities.
April has been a month of cautious recovery as we begin get ever close to emerging from lockdown. The CapGoods space has continued to be at the forefront of Hedge Fund flow at Redburn this month, while we have also seen them begin to step in and buy Food & Bev names. Flow in either direction in Banks has dried up amongst our Hedge Fund clients as well. For institutions, Pharma remains the core focus, turning increasingly bullish since the last update, while for both Hedge Funds and Institutions, the Autos space in April has been very quiet.
A new month has brought with it new themes, and while the some remnants of March are unlikely to disappear quickly (ie Institutional focus on Pharma), an uptick in flow amongst the Cap Goods names and Airlines by Hedge Funds, does reinforce the sense of green shoots beginning to emerge.