Flows are rotating into FRSH while ESE weakens

🇺🇸 Equity flows are shifting from $ESE (ESCO Technologies Inc.) to FRSH, signaling a potential rotation but not yet a broad-based trend. Today’s snapshot shows outflows from the ESE theme totaling $131M, while FRSH attracted $113M in inflows. Despite similar counts of inflow and outflow clusters - 138 and 135 respectively - the dominant move is concentrated in these two themes, with ESE leading the exits and FRSH leading the bids. This divergence underscores a cautious stance among traders, favoring fresh names over the previously dominant ESE. The confirmation of this rotation hinges on whether FRSH can sustain inflows and whether the ESE outflows begin to slow. Next, focus on whether FRSH maintains its bid strength and if broader themes start to follow this shift, which could signal a more meaningful change in market leadership.