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Big Money Managers Brace for Inflation Resurgence
2 Feb
Summary
- Major firms are positioning portfolios for renewed inflation.
- Some funds are building short positions in US Treasuries and gilts.
- Inflation-adjusted Treasuries are favored by some for their yield buffer.
Prominent money managers are reinforcing their investment portfolios in anticipation of a renewed inflationary period. Firms like BlackRock Inc., Bridgewater Associates, and Pacific Investment Management Co. are taking proactive steps to address potential economic shifts.
BlackRock's funds, for instance, are establishing short positions in US Treasuries and gilts, hedging against the possibility that interest rates may not decline as expected. This strategy reflects a cautious outlook on future rate movements.
Bridgewater Associates is reportedly favoring an allocation towards stocks rather than bonds in its investment strategy. Meanwhile, Pimco is highlighting the advantages of Treasuries that incorporate inflation adjustments into their yields, seeing them as a valuable hedge against rising prices.
