2025 is going to start and mutual funds and hedge funds managers cash levels are near record lows
Source: BofA
Warren Buffett's Berkshire Hathaway has a cash position of $325 Billion
or 30% of its total AUM, which is Buffett's largest allocation to cash since in 35 years. source : barchart
"Cash is trash"
Fund Manager cash allocations at a record low... Source: Callum Thomas, BofA
🚨 MARKET EUPHORIA IS AN UNDERSTATEMENT🚨
Asset managers' net long positions on the S&P 500, Dow Jones and Nasdaq futures are now the second-highest in 15 YEARS. They are now only slightly below the 2021 levels seen before the 2022 bear market. Professionals are all in stocks. Source: Global Markets Investor
Asset management is a tough business to be in:
Source: Invest In Assets
New All Time High for the 60-40 portfolio
Source: Yahoo Finance
Ahead, of interest rates cut, how does the average asset allocation look like?
Are we going to see cash moving out of money markets into risk assets? Well, according to this chart by Mike Zaccardi, CFA, CMT, MBA, as a percent of total assets, money market fund holdings are now at 2-year LOWS !!!
Record Short Position in 10-Year Treasuries
A short squeeze ahead? Hedge Funds have now built the largest 10-Year Treasury Future Equivalents short position in history. Note that Asset managers (long-only) have the opposite as they have built record long positions. Source: Barchart
