After parking investors' money in cash at record proportions, value fund managers have begun buying stocks again, according to The Wall Street Journal.
Value funds are a good bellwether for market watchers, because their performance has been strong in recent years, beating most other sectors. The trend may signal renewed faith in the market and an opportunity to pick up stocks on the cheap.
Investors have been pouring money into these funds, with large-cap value funds gaining $18.5 billion in new money last year, according to data from Boston-based
"Things all turned around to a large degree in May and June," said Curtis Jensen, referring to the market correction. Jensen manages
And he and others are putting their inflows to work.
Jensen's fund, for example, which had cash holdings of 40% a year ago, has bought $100 million in stock and other products, brining that cash allocation down to 28.8%.
Value funds have fared well in a turbulent market, with those that invest in large companies up 15% this year, compared to large-cap growth funds, which are down 6%.
But not all managers are spending down fund cash yet.
"I believe my contemporaries are taking on greater risk," he said.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.
