.. to the slaughter. Funds shifting to bonds at these yields will regret it. From FT earlier this week:
“Investors have fallen so far out of love with stocks that assets in fixed income hedge funds are poised to overtake those in equity trading strategies for the first time in the history of the $2tn industry.
At the end of the third quarter, both equity hedge funds and relative value arbitrage – a catch-all for a variety of fixed income strategies – managed $586bn each. “It’s highly likely that by the end of the year equities will no longer be the largest strategy, and that has never happened before”, said Ken Heinz, president of HFR, the data provider.”