Wed, Mar 4, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Expecting the Great Rotation, Part 1

Wednesday, November 13, 2013

Benedicte Gravrand, Opalesque Geneva:

This series of articles explores the concept of the Great Rotation, its reality and how it is viewed. Today, we look at how the Great Rotation was predicted last year just as equities were outperforming Treasuries.

Part 2 will be published tomorrow (Nov.14th, 2013), Part 3 on Friday and Part 4 on Monday.

The Vanguard Total Stock Market Index Fund recently toppled the Pimco Total Return bond fund as the world’s biggest mutual fund by assets under management, after Pimco had held that title for half a decade, Bloomberg reported. Indeed, the Pimco fund shrunk by $37.5bn this year to $247.9bn at the end of October, while the Vanguard fund ended October with $251bn.

This is one of the signs that investors expect the 30-year bull market in bonds to end and want to profit from the bull market in U.S. equities. Another was seen in the latest BofA Merrill Lynch Fund Manager Survey which said investors had increased their equity allocations during October to a net 52% overweight, while also upping their underweight in bonds. However, cash holdings rose to 4.6% and there is a small net majority of asset allocators who now view equit......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Outlook - Philippe Jordan predicts 'alternative beta' to displace hedge funds, Stan Druckenmiller says Europe, Japan stocks will outpace U.S.[more]

    Philippe Jordan predicts 'alternative beta' to displace hedge funds From Investordaily.com.au: The disappointing performance of hedge funds in recent years is a result of "too much money chasing too little alpha", argues Capital Fund Management. Speaking to InvestorDaily, CFM partner Phi

  2. Investing - Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched, Myriad hedge fund sold bulk of its Alibaba stake last year[more]

    Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched From Valuewalk.com: As hedge fund manager Seth Klarman, leader of the $28 billion Baupost Group, reviews 2014 performance and considers investors gained near 7 percent on the year, he cons

  3. Investing - As rig count falls, hedge funds pile into long crude futures, Parus tactically shifts long/short exposure ratios, Mario Draghi outflanking Kuroda as bearish euro bets surge, Prime Capital’s 500.com bet derailed after 41% drop[more]

    As rig count falls, hedge funds pile into long crude futures From 247wallst.com: In the week ended February 27, the total number of rigs drilling for oil in the United States came in at 986, compared with 1,019 in the prior week and 1,430 a year ago. Including 281 other rigs mostly drill

  4. Opalesque Exclusive: SEC’s Mark J. Flannery warns hedge funds against valuation misconduct[more]

    Komfie Manalo, Opalesque Asia: Securities and Exchange Commission chief economist and director of Division of Economic and Risk Analysis (DERA) Mark J. Flannery has warned of the risks posed by market misconduct, particularly in the true valuation of assets by hedge fund managers. In his

  5. Dymon Asia's $3bn macro hedge fund lost 10.45% in January[more]

    From Reuters.com: Dymon Asia's $3.1 billion macro hedge fund lost 10.45 percent in January, performance data seen by Reuters showed, a month where many peers lost heavily after a surprise rise in the Swiss franc. Singapore-based Dymon, set up by Danny Yong, a former founding partner and chie