Man Group, the world’s largest listed hedge fund firm, is advising investors to reduce exposure to US equities and increase allocations to Europe, Asia, and emerging markets amid concerns over dollar weakness and elevated Treasury yields, according to a report by Bloomberg.
Kristina Hooper, the hedge fund’s chief market strategist, said the US is losing its safe-haven status, suggesting that investors should rebalance portfolios and take profits from US holdings. While artificial intelligence optimism has supported the S&P 500 this year, US stocks are underperforming global peers due to worries over trade tensions, a rising fiscal deficit, and broader economic uncertainties.
Hooper highlighted attractive valuations outside the US, alongside drivers such as Europe’s defence spending, China’s policy support, and potential stimulus in Japan. Rising Treasury yields and a shift in investor preference toward gold as a safe haven may also weigh on US equities, particularly long-duration sectors like technology.
Concerns over a potential tech bubble are mounting as AI-related enthusiasm pushes valuations above historical averages. Hooper noted that expected corporate earnings could be affected by tariffs and US policy challenges, suggesting that AI-driven spending alone may be insufficient to sustain further gains in US markets.
