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BofA survey shows fund managers lift U.S. equity overweight to highest since December 2024

BofA survey shows fund managers lift U.S. equity overweight to highest since December 2024

The latest Bank of America survey showed stronger expectations for U.S. stocks to beat other regions, while sentiment toward London-listed shares fell to its weakest since August 2020.

Fact Check
Both verified sources, including high-authority Reuters, confirm the core claim that the BofA Global Fund Manager Survey showed U.S. equity allocations raised to the highest overweight since December 2024. The survey also indicated stronger bullish sentiment on U.S. stocks. The specific detail about London-listed shares sentiment falling to its weakest since August 2020 is not explicitly corroborated in the provided sources, but the central claim is well-supported.
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Summary

Fund managers raised their allocations to U.S. equities to the highest overweight level since December 2024 in Bank of America's latest Fund Manager Survey, with a net 24% expecting U.S. stocks to outperform other regions. The survey also showed increasingly aggressive positioning, with cash holdings falling from 4.1% to 3.6%. Michael Hartnett's team said BofA's Bull & Bear Indicator climbed to 9.4, signaling extremely bullish investor sentiment and suggesting upside for risk assets may be more limited over the summer. At the same time, confidence in London-listed shares fell to its lowest since August 2020, even as the FTSE 100 is up 5.7% year to date versus more than 10% for the S&P 500.

Terms & Concepts
  • overweight: A portfolio position that is larger than the benchmark or typical allocation.
  • Fund Manager Survey: A survey of professional investors used to track positioning and market sentiment.
  • Bull & Bear Indicator: A BofA sentiment gauge used to assess whether investor positioning is becoming excessively bullish or bearish.