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Washington Post – Hedge funds cut stock holdings by almost two-thirds from a year ago, signaling that they are less willing to take risks amid tighter credit and almost $1 trillion in write-downs and losses, Goldman Sachs Group said.
Net holdings of equities decreased to 17 percent from 47 percent a year ago, David Kostin, who leads Goldman’s New York-based portfolio strategy team, wrote in a note.
"Hedge funds may have returned closer to their roots as ‘hedged’ investors, less dependent on market direction to produce returns, migrated away from the levered long strategies that many funds pursued during the upward-trending market of 2002 to 2006," Kostin said.
Washington Post – Hedge funds cut stock holdings by almost two-thirds from a year ago, signaling that they are less willing to take risks amid tighter credit and almost $1 trillion in write-downs and losses, Goldman Sachs Group said.
Net holdings of equities decreased to 17 percent from 47 percent a year ago, David Kostin, who leads Goldman’s New York-based portfolio strategy team, wrote in a note.
"Hedge funds may have returned closer to their roots as ‘hedged’ investors, less dependent on market direction to produce returns, migrated away from the levered long strategies that many funds pursued during the upward-trending market of 2002 to 2006," Kostin said.
Reuters – John Thain, the Merrill Lynch & Co Inc chief executive who engineered the firm’s sale to Bank of America Corp, will head investment banking, securities and wealth management at the new company — at least for now.
But analysts don’t expect Thain, who has now led two major Wall Street companies, to remain in his new job for long. They expect him to aim to succeed Bank of America (BAC.N) Chief Executive Ken Lewis, 61, or seek a CEO job elsewhere.
"The fact is that he’s a CEO — he’s not going to stay long," said Greg Donaldson, director of portfolio strategy at Donaldson Capital Management in Evansville, Indiana.
Thain, 53, was previously CEO at NYSE Euronext Inc (NYX.N) and before that was president and chief operating officer at Goldman Sachs Group Inc (GS.N).
