economy
February 23, 2026
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.
Continue reading the original article