Long Magnificent Seven still the most crowded trade

Source: afr.com afr.com

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Fund managers are also positive on profit growth expectations for the first time since January 2022. In addition, these investors want companies to prioritise returning cash to shareholders, through share buybacks, dividends and mergers and acquisitions; the highest level since July 2015, BofA said. A net 4 per cent of these investors say companies are overleveraged, the lowest since September 2016 and the largest month-over-month drop since February 2021, which helps explain why credit spreads so low. As for March’s most-crowded trades: Long Magnificent 7 (58 per cent); short China equities (14 per cent); long Japan equities (13 per cent);...