"ObamaCare" subsidies are nearing expiration, and hedge funds have net sold US healthcare stocks for the first time in 14 weeks.

Goldman Sachs Group, Inc. stated in a report last Friday that lawmakers are urgently seeking ways to suppress costs as subsidies are set to expire, resulting in hedge funds selling more stocks in the U.S. healthcare sector last week than buying for the first time in 14 weeks. Approximately 24 million Americans purchase health insurance through the Affordable Care Act, also known as "Obamacare". Unless Congress takes action, the increased subsidies during the COVID-19 pandemic will expire on December 31, leading to significantly higher costs for users. U.S. President Trump stated last Friday that he hopes to meet with health insurance companies in the coming weeks to discuss methods of reducing prices. According to a client report from Goldman Sachs Group, Inc., hedge funds ultimately became net sellers of healthcare providers and services, pharmaceuticals, and biotech companies last week. Life sciences and healthcare technology were the only two sub-industries that saw net buying. The bank stated that the ratio of short positions to long positions exceeded eight to one. Short positions indicate an expected price decline, while long positions anticipate an increase. Goldman Sachs Group, Inc. noted that the holdings in the healthcare sector remain relatively high compared to the average levels of the past year and five years. Rising healthcare costs and increases in other consumer prices have heightened public dissatisfaction and may be highlighted in the 2026 midterm elections. Last week, the Republican-controlled House passed a bill supported by Trump aimed at reducing premiums for some groups while cutting subsidies for others and increasing costs for some starting in January 2027 (two months after the voter turnout). According to data from Hazeltree tracking 700 global asset management companies and 15,000 stocks, in November, telemedicine company Hims & Hers Health (HIMS.US) and scientific instrument manufacturer Bruker (BRKR.US) were the most favored short targets among U.S. mid-cap stocks.