As we approach the end of the second quarter, mutual fund and hedge fund portfolio managers will be “window dressing” their portfolios for their second quarter reports. I just read that Paulsen & Co. dumped their entire stake in Sino-Forest for a loss of hundreds of millions of dollars. Many fund managers are also trying to get stocks like RIMM and NOK out of their portfolios before the end of the second quarter.
Aside from dumping individual stocks, many money managers appear to be using new cash to re-position their portfolios into more defensive sectors like health care and consumer staples which have been moving up in my relative strength models.
I recently published several new articles on Seeking Alpha:
Pimco Closed-end Funds Under Pressure (over 6,000 page views so far).
I just submitted another article on a TIPS closed-end fund (WIW) which will probably be published tomorrow.