Hedge funds increased their exposure to stocks in the financial sector amid the banking turmoil in March, swooping in for a buying opportunity at lower prices, according to a report by Reuters.

Hedge funds raised their exposure to financials more than any other sector, new analysis by S&P shows.

Managers used the bank stress as an early buying opportunity, dismissing speculation that a significant crisis was at play, with an S&P Global Market Intelligence note showing hedge funds grew their exposure to financials by 5.5%, having earlier reduced it by 3.9% in February.

In contrast, traditional asset managers cut their positioning in financials by 1.1% and also slashed $20.2 billion in equities stakes across other sectors.