BofA: Active managers’ holdings update

Bank of America analysts report that active fund managers are adjusting their portfolios amid mixed sentiment and sector rotations. Fund cash levels have increased, while equity exposure has decreased for the first time in nearly a year. A disconnect between institutional and retail investors is noted, with bullish advisors contrasting with bearish retail sentiment. Momentum stocks are weakening, and sector preferences are shifting towards Communication Services, while Information Technology exposure has declined. Despite improved market breadth, mega-cap stocks still dominate portfolios, raising concentration risk concerns.