last month hedge funds did an aboutface with financial stocks hedge funds cut exposure to financial stocks by 1 throughout april after increasing it by 55 in march according to the latest sp global market intelligence data the financial sector has been under pressure since the collapse of several banks in recent months leading to volatility among regional bank stocks the sp 500 financial sector is down more than 3 in may the spdr sp regional banking exchangetraded fund is off by 13 this month