Fund Managers Have ‘Tapered’ Their Extreme EM Underweight Sentiment

The smart money allocated more money to emerging markets last month as investor sentiment turned against EM stocks, though fund managers are still underweight on them overall, and even though a majority of fund managers think equities are currently overvalued they have increased their long positions. The biggest reductions were in UK and Eurozone allocations, with modest a modest pull away from Japan. Even though some high-profile tech stocks have taken a beating in recent months, fund managers only allocated a small portion of their portfolios away from them. “Investors have ‘tapered’ their extreme Q1 positions in EM & growth…