Managers sell down equities on macro turmoil

Asset allocators are selling down equities to cut risk exposure as markets digest the EU's solution to the Greek crisis, and US debt fears persist.

Asset allocators including Skandia’s Rupert Watson are urging their fund managers to take risk off the table and move into cash. Hedge fund veteran George Soros’ $25.5bn Quantum Endowment fund recently moved to 75% cash, while Jupiter’s Philip Gibbs has almost doubled the cash allocation in his International Financials fund to 45%, with both managers struggling to find value in their markets. Watson said he is advising Skandia managers to keep their powder dry until there is more clarity on the European sovereign debt crisis. The group has been overweight equities since the end of ...