Yahoo Finance·2026-02-23 10:53Core Insights - Mutual funds and hedge funds are in agreement on several key stocks, including Boeing, Citigroup, Mastercard, Visa, and Vertiv Holdings, as they both show overweight positions in these companies at the start of 2026 [1][4]. Group 1: Stock Performance - Vertiv has seen the most significant increase, with shares surging 50% year-to-date, while Boeing has gained 6.8% as investors shift towards industrials [2]. - In contrast, Mastercard and Visa have both declined over 7%, and Citigroup has experienced a modest drop, largely due to pressures from proposed caps on credit card fees [2]. Group 2: Fund Strategies - Mutual funds are operating at a record low cash level of 1.1% of assets, while hedge funds are utilizing gross leverage near record highs, indicating a strong commitment to equity positions [3]. - Despite mutual funds being overweight in financials, hedge funds are underweight in the same sector, showcasing differing strategies between the two types of funds [5]. Group 3: Sector Trends - Both mutual and hedge funds have reduced their exposure to software stocks, anticipating a selloff due to potential AI disruptions, although hedge funds still maintain a net long position in software, constituting 7% of their portfolios [6]. - Healthcare and industrials are among the most overweight sectors for both mutual and hedge funds, indicating a consensus on these areas [5]. Group 4: Performance Metrics - 57% of large-cap mutual funds are outperforming their benchmarks year-to-date, potentially marking 2022 as the strongest year for mutual fund performance since 2007 if the trend continues [7]. - Hedge funds have returned 1.5% year-to-date, experiencing significant volatility in their long and short positions [8].