Deutsche Bank: Equity Positioning Rises Despite Fund Outflows

Deep News
Sep 28

Deutsche Bank strategists say overall equity positioning climbed into slightly overweight territory last week, with both active and systematic investors adding to their holdings.

The team led by Parag Thatte said that within systematic strategies, volatility-control funds increased their equity allocation and are now at the 98th percentile; commodity trading advisor (CTA) equity positioning edged slightly higher.

At the sector level, large-cap growth and technology stock positioning surged to significantly overweight, the team said.

Strategists also wrote that the rotation of capital into the technology sector still has room to continue.

The report noted that equity funds saw their first weekly outflow in three months ($10.2 billion), driven mainly by the largest single-week outflow from the US market in six months ($21.2 billion).

Bond fund inflows expanded ($17.3 billion), and money market funds also attracted net inflows ($11.6 billion).

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