Fund manager pessimism towards banks has decreased substantially in the past month, according to the latest survey from Merrill Lynch.
The survey of 214 fund managers from across the globe found the net percentage of respondents who were underweight banks went from 48% in the March survey, to just 26% in the first week of April. Cash holdings have also been reduced with a fall in overweight positions from 41% last month, to just 28% now. Only 17% of respondents were underweight equities in April, down from 41% in March, with a move towards cyclical sectors. Gary Baker, co-head of international investment strategy at Banc of America Securities-Merrill Lynch Research, says: "Improving sentiment on financials has dec...
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