Morning Brew: Capital’s Big Redirection in May 2025
Where the Money is Headed
After President Donald Trump cooled off his appetite for super‑high tariffs, investors tightened their nets. May 2025 saw a clear reshuffling of capital across both regions and strategies.
- Europe: GBP 369 million poured in – the strongest flow since June 2024.
- United States: GBP 115 million net inflows – the slimmest month‑to‑month figure since September 2023.
- UK: investors sent GBP 449 million out of equity funds.
What Stocks Are Shooting Up?
Technology folks are at the top of the list – especially those with AI, semiconductor, and hardware ties. Fund managers poured money into individual tech names rather than generic index indices.
Strategy‑Shifts on the Field
Hands down, multi‑strategy and quantitative equity funds found fertile ground in the wild equity swings, capitalising on volatility. In contrast, fixed‑income and commodity‑focused tactics were hit by fresh worries about sovereign debt and erratic price action.
Oil: A New Hedge Option
Hedge funds began taking long positions in oil as a buffer against Middle‑East geopolitical drama. Rising tensions could keep this tactic humming for the foreseeable future.
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