One-Third of Funds Still Sitting on Cash: While there have been reports of portfolio managers easing back into stocks, one-third of them are still sitting on record amounts of cash. Until the housing market stabilizes and corporate earnings become strong, they say, they are not convinced the market will deliver consistently strong returns, even though the S&P 500 has risen some 40% since its March 9 low.

"I'm not sure it's so far away, but I don't think we've seen the bottom yet," Nick Kaiser, a portfolio manager with the Amana funds, who has a whopping 30% of his holdings in cash, told SmartMoney.

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