Flows are rotating into FRSH while ESE weakens

🇺🇸 Equity flows are shifting away from the recent theme leadership, signaling a potential pause in the rally. Today’s data shows a net outflow of 40 clusters, with $ESE (ESCO Technologies Inc.) leading the exit at $267 million, while inflows remain modest, led by FRSH at $96 million. The divergence underscores a waning conviction in the previous momentum, especially as the largest outflow centers on the theme that once dominated the move. This pattern indicates traders are pulling back from the most crowded names and reallocating into fresher ideas like FRSH, which is seeing continued buying interest. The next key step is whether inflows into FRSH sustain and broaden, confirming a shift from leadership in the old theme to a new one. Watch for whether the flow into FRSH remains dominant or if broader participation emerges to support a more durable change.