Komfie Manalo, Opalesque Asia: A survey amongst fund managers by the Bank of America Merrill Lynch, conducted during the second week of November, found that hedge funds are more bullish with Japan than at any time in the last decade. The survey said fund managers also have the most positive outlook on Japan.
According to the survey, the most common investment thesis is not to resist the so-called "Abenomics" economic policy. It was introduced by Japanese Prime Minister Shinzo Abe and encourages investors not to go against the central bank’s efforts to re-inflate the markets, a copy of a similar policy introduced by the U.S. Federal Reserve to revive the American economy at the height of the 2008 financial crisis.
The survey also pointed the bullish sentiments amongst hedge fund managers to the planned rotation of Japan's $1.1tln public pension fund out of government bonds and into stocks. Hedge fund managers believe that the move will boost the equity markets. Another positive note from Japan is the estimated $7.6tln invested by retail investors into stocks.
Tomas Jelf, chief economist at hedge fund Prologue Capital, reportedly said, "These numbers of mind-numbingly large."
Amongst the macro managers that are optimistic on Japanese prospects are long-time Japan bull Eric Mindich and his Eton Park Capital Management; Hugh Hendry's London-based Eclectica Asset Management; and the Fortress Investment Group’s hedge fund managed by Jeff Feig and Michae...................... To view our full article Click here
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