Sun, Aug 28, 2016
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. Strategies - The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I, Hedge funds get more pushback on terms as enthusiasm for strategy wanes[more]

    The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I From IBTImes.co.uk: To illustrate a strategic gap common to today's portfolio managers, George Sokoloff, PhD, founder and CIO at Carmot Capital, proposes an interesting thought experiment – a breakdown of

  2. Institutional investors - Investors set to increase allocation to private debt, With investment income key, Richmond retirement system faces funding challenges[more]

    Investors set to increase allocation to private debt Investors are set to increase their allocation to private debt, with 60% revealing they believe the private debt market will grow over the next 12 months, according to a new study by Elian, a leading funds services provider. 41%

  3. Investing - Hedge funds snap up banks, unload Apple, Some of hedge funds' favorite stocks are finally starting to beat the market, Einhorn's Greenlight shifts positions, Treasury yield climbs to two-month high as Fischer joins hawks, 9 stocks smart investors put their money in last quarter[more]

    Hedge funds snap up banks, unload Apple From Barrons.com: Prominent hedge funds have a newfound love of big banks, and some have a distaste for shares of Apple, regulatory filings released last week show. The filings suggest that the funds have been pivoting their portfolios in recent mon

  4. Chesapeake energy seeks $1 billion loan to refinance debt[more]

    From Bloomberg.com: Chesapeake Energy Corp. is seeking a $1 billion loan as the company battered by cratering fuel prices and credit downgrades takes a step to address its $9 billion debt load. The natural gas producer hired Goldman Sachs Group Inc., Citigroup Inc. and Mitsubishi UFJ Financial Group

  5. Institutions - Nordic pension funds magnify focus on unlisted and direct investing, building up teams[more]

    From IPE.com: As bond yields remain at low or negative levels, pension funds and other institutional investors in the Nordic region are stepping up efforts to find higher returns by adding more unlisted investments to portfolios and are expanding in-house teams in order to do this, according to new