Citywire Selector - For Professional Investors

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Bitcoin trumps tech as fund managers’ most crowded trade

Bitcoin trumps tech as fund managers’ most crowded trade

Bitcoin’s massive rise year-to-date has resulted in the cryptocurrency unseating technology as the most crowded trade in today’s markets, according to the latest global fund manager survey.

Bank of America Merrill Lynch’s sentiment test, which covers 181 recipients overseeing $549 billion in assets, asked investors where they were facing potential headwinds.

The most popular choice, with 26% of responses, was a long bet on Bitcoin. The other prominent pick over 2017 so far has been long exposure to the US dollar.

A new name was also chosen as the biggest tail risk facing investors, with 35% saying North Korea was now posing huge problems. This replaced Fed and ECB policy timetables, which was raised as the biggest fear in the August reading and remained the biggest worry for 21% of those polled.

Since the start of the year, concerns over the European Union disintegrating had been prominent, as had Chinese credit tightening and also summer worries about a bond market meltdown, which has fallen from 20% to around 10% of fund managers’ greatest concerns.

When asked what would be the most surprising event to contend with over the next six months, 54% said a recession, while 30% said the least surprising event would be an equity bubble.

In terms of direct positioning, cash levels remain high at around 4.5%, but not at previous highs. This is while the underweight to US equities is at a 10-year high, with a net 28% underweight.

The overweight to emerging markets is at a seven-year peak, which rose from 39% in August to 47% of managers overweight in September.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Events
  • Citywire Alternative Ucits Retreat 2017

    Citywire Alternative Ucits Retreat 2017

  • Citywire Milan 2017

    Citywire Milan 2017

  • Citywire Paris 2017

    Citywire Paris 2017

  • Citywire Deutschland 2017

    Citywire Deutschland 2017

  • Citywire DACH 2016

    Citywire DACH 2016

  • Citywire Italy 2016

    Citywire Italy 2016

  • Citywire Milan 2016

    Citywire Milan 2016

  • Citywire Alt Ucits 2016

    Citywire Alt Ucits 2016

  • Citywire Berlin 2016

    Citywire Berlin 2016

  • Citywire Switzerland 2016

    Citywire Switzerland 2016

  • Citywire Amsterdam 2016

    Citywire Amsterdam 2016

  • Citywire Montreux 2016

    Citywire Montreux 2016

  • Citywire Deutschland 2016

    Citywire Deutschland 2016

  • Citywire Latin America 2016

    Citywire Latin America 2016

  • Citywire Milan 2016

    Citywire Milan 2016

  • Citywire Munich 2016

    Citywire Munich 2016

  • Citywire Paris Alt Ucits 2016

    Citywire Paris Alt Ucits 2016

  • Citywire Zurich Alt Ucits 2016

    Citywire Zurich Alt Ucits 2016