What can Mutual Fund Flows tell us about Future Stock and Sector Returns? CITI'S TAKE Mutual fund flows are widely accepted as a measure of investor sentiment that can be useful to predict future returns. Building on our prior research on using mutual fund flows for style rotation, we investigate the predictive power of fund flows at the individual stock and sector levels. We find that flows can be effectively used to build a systematic sector rotation model, however, its efficacy as a stock selection strat ...