By Seeking Delta of http://seekingdelta.wordpress.com
Many well-known hedge fund managers are also philanthropists, and many of them have their own foundations. Seth Klarman of Baupost is one of those with his own foundation, and he invested in a handful of hedge funds through his foundation. This list of Klarman's favorite hedge funds is based on the Klarman Family Foundation's 990 Read More
This week, active managers have, on average, a 62% allocation to equities. This is down from 67% last week. The median allocation fell to 82% while the top quartile of active managers have an allocation of 100% or greater to equities with the bottom quartile at a 50% or less equity exposure. The eight week moving average is now at 67%.
The NAAIM number measures current equity exposure (0% would be all cash, 100% fully invested). Additional detail can be found here.
Individual investor’s sentiment has now increased for three consecutive weeks. Bearish sentiment also increased slightly to 26% from last week’s reading of 25% which means the large increase in bullish sentiment came from a decrease in neutral sentiment. The Bull-Bear spread is at 24% and the eight week moving average is at 49%.
Individual investor sentiment is now just below the “extreme” territory; measured as one standard deviation above average.