Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:GMO Gets Out of the Bond Market Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, November 28, 2012

GMO Gets Out of the Bond Market

News summary by MFWire's editors

More than ten years after sitting out the tech bubble, GMO Funds [profile] is betting that another asset class is overvalued.

Ben Inker, co-head of asset allocation for the Boston-based fund family, told the Financial Times that GMO has "largely given up on traditional fixed income," preferring to hold high-quality U.S. equities and cash.

FT writer Dan McCrum thinks that this is a risky decision, given investors' continuing preference for bond funds, but one that may pay off -- like GMO's decision to eschew tech stocks over a decade ago. "If GMO is right and prices of government debt fall, its decision could prove a coup to rival its refusal to buy dotcom stocks well before the peak of the internet bubble in 2000. Back then, it suffered three years of investor outflows before eventually being proved right," McCrum writes.

So what does GMO like? Big U.S. and Japanese companies, but mainly cash. Inker says that GMO is holding more cash than at any time but late 2007. 

Edited by: Chris Cumming


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2019: Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2019
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use