Global investors have regained a strongly bullish stance on the outlook for equity markets in the second half of 2014, according to the BofA Merrill Lynch Fund Manager Survey for July. A net 61 per cent of global asset allocators are now overweight equities. This ranks as the survey’s highest reading on this measure since early 2011 and represents the panel’s second-strongest response ever.   This aggressive positioning for recovery in H2 reflects a significant increase in investors’ inflation expectations. A net 71 per cent expect global core CPI to be higher in 12 months, up 13 percentage points since

Retail sales gained 0.3 per cent in May and while that was below the 0.6 per cent rise expected on Wall Street the data did little to alter views that the economy is regaining steam. Michael Zimmerman, chief executive of hedge fund Prentice Capital, has recently announced a string of investments in online retail stocks including Gaiam, dELiA*s and PacSun, as revealed through mandatory SEC disclosures of substantial shareholdings.   Zimmerman believes retailers integrating mobile devices into their online strategy have the strongest opportunity for growth. Zimmerman's view is that online shopping will continue to take share, the emergence of

The Bloomberg Alternatives Marketing Council has been launched, bringing together experts from various disciplines to help hedge funds increase transparency, accelerate growth and define marketing practices. The need for hedge funds to begin defining marketing best practices is significant, given a changing competitive landscape shaped not only by regulatory changes such as the JOBS act, but also by the growth of new structures such as liquid alternatives.   One estimate indicates as much as USD12.8 trillion of US retail capital may ultimately be in play as a result of these changes, with nearly USD1 trillion of potentially flowing into alternatives

Traditional fixed income investors are struggling to generate meaningful returns from the current rising interest rate environment, but GAM continues to find attractive opportunities in the subordinated debt of investment grade companies. GAM believes these bonds offer attractive yields and are supported by robust businesses with strong balance sheets and the potential for capital appreciation.   Financial companies present some of the most exciting junior debt investments as they continue to become safer and sounder with the introduction of capital adequacy regulations such as Basel III. Banks have managed to raise an unexpectedly large amount of capital not only via