New Delhi, July 28 -- NEW YORK - Hedge funds are concentrating more money in American healthcare stocks than at any point in the past five years, according to data compiled by Goldman Sachs, a positioning shift that signals growing conviction that the sector is poised to outperform as policy uncertainty partially resolves and demographic demand intensifies.

The bank's prime brokerage division, which tracks trading activity across hundreds of funds ranging from large multi-strategy platforms to specialized healthcare vehicles, recorded net exposure to US healthcare equities reaching levels not seen since early 2021, when pandemic-driven pharmaceutical investment peaked. The data covers roughly four weeks ending July 18.

The rotation has ...