Tide turns as managers cut oil holdings and add to banks

Global fund managers are starting to move out of oil and back into financials in a reversal of two of...

Global fund managers are starting to move out of oil and back into financials in a reversal of two of the most crowded trades of the year. The recent oil price dip has caused investors to unwind their overweights in the sector, according to Merrill Lynch’s fund manager survey for August. Until recently, the prevalent view was that energy was a sure bet with oil set to hit $150 per barrel, while the business models of many financial institutions seemed damaged beyond repair. Merrills said this view has paid off, as banks have underperformed oils by 28% over the last year. But in July, t...