economy
Hedge funds are betting big on industrials in 2026. Here are their favorite picks
Industrials are the “it” sector of the stock market for hedge funds.
TL;DR
- Hedge funds have a record overweight position in the industrials sector, making it their 'it' sector for 2026.
- The S&P 500 industrials sector has seen significant gains, performing as the third-best performer year to date and the top gainer over the last 12 months.
- Goldman Sachs noted a substantial rotation by hedge funds into cyclical sectors, with industrials seeing the largest increase in overweight allocation.
- T1 Energy and Carrier Global were among the top industrial stocks that hedge funds increased their positions in during Q4 2025.
- Other popular industrial stocks among hedge funds include ITT, Bloom Energy, and Everus Construction.