Flows are rotating into FRSH while ESE weakens

🇺🇸 A clear shift is emerging as inflows into the $FRSH (Freshworks Inc.) theme surpass outflows, signaling a potential rotation amid broader equity weakness. While ESE remains the dominant outflow with a $54M exit, the FRSH theme is now seeing a $39M inflow, reversing recent momentum and suggesting fresh buyer interest. The flow pattern indicates traders are moving away from defensive or defensive-like themes toward more growth-oriented or innovative names. This flow divergence is notable given the overall market context, with outflows still outnumbering inflows (166 vs. 104). The confirmation comes as FRSH leads the daily inflow tally, while ESE continues to see significant liquidation. The next test will be whether FRSH sustains its inflow and if broader participation broadens beyond this single theme, which would signal a more meaningful shift rather than a one-off bounce.