The BofA Fund Manager Report Seems to be Historically Bullish
In this report, we examine the BofA Global Fund Manager Survey for July 2023. As a reminder, this is a survey of 262 fund managers with a combined $652bn AUM. TPA believes it is critical to monitor what this influential group of managers is doing and thinking to get a handle on what could happen next.
The report points to the idea that, although stocks have had a huge rally, people who manage much of the world’s wealth are not and, possibly, have not been involved. Year to date, the S&P500 is up 14.52% and TECH (XLK) is up 29.67%, but investors are long Bonds, Staples, Euro, Cash, and Utilities. Equities and TECH are severely underweighted.
This means either:
- The participants are not telling the truth – unlikely
- They are right and stocks should decline
- They are wrong and they will soon have to buy – stocks will rally
- They are wrong and they will severely underperform
Jeff Marcus founded Turning Point Analytics (TPA) in 2009 after 25 years on trading desks and 13 years as a head trader to provide strategic and technical research to institutional clients. Turning Point Analytics (TPA) provides a unique strategy that works as an overlay to clients’ good fundamental analysis. After 10 years of serving only large institutions, TPA now offers its research services to mid and small managers, RIA’s, and wealthy sophisticated individuals looking for a way to increase their returns and outperform their peers.
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