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BofA Fund Manager Survey: Long Bitcoin the most crowded trade

Published 18/05/2021, 15:03
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By Samuel Indyk

Investing.com – Bank of America (NYSE:BAC) Global Research has released its latest global Fund Manager Survey (FMS) with some interesting results.

According to the survey, the 194 respondents say the most crowded trade is currently long Bitcoin, with 43% saying that is the case. Long Bitcoin has overtaken long Tech which has fallen to second place.

As BAML notes, prior “peaks” in crowded trades (tech in Sep’20 an Sep’18, USTs in Mar’20, USD in Jan’17 and Feb’15) were associated with relative tops.

However, it is worth noting that long Bitcoin was also the most crowded trade in the survey in January, ahead of the huge run up in cryptocurrencies that saw the world's largest cryptocurrency reach its all time high above $64,700 earlier this year.

Other Indicators

The survey showed that investor sentiment is “unambiguously bullish” with 69% expecting above trend growth and inflation, a record high.

The respondents, who have total assets under management of $592bln, say they are positioned for inflation with a hint of defensives.

The Eurozone is the number one Overweight region while investors have turned long UK stocks for the first time since July 2012.

In fact, allocation to UK equities increased 4 percentage points to 2% overweight, the highest since Mar’14. Allocation to US equities fell 1 percentage point, to Eurozone equities rose 5 percentage points and to EM equities fell 3 percentage points.

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