FT says, Leading asset managers are positioning for potential…

Team S · 2026-01-08T15:28:10.000Z

Several big firms are trimming exposure or buying protection via derivatives, with Amundi hedging across portfolios as an alternative to selling outright. Concerns center on “insane” valuations and parallels to the dotcom era, with Nvidia at about 46x earnings and Apple at 37x after a strong 2025 where the “Magnificent Seven” rose ~21%. Blue Whale exited Microsoft and Meta, now only holding Nvidia, while GQG Partners fully sold the Mag Seven, warning of high AI cash burn, limited profitability, and aggressive capex/accounting. Policy institutions including the IMF, BIS, BoE, and ECB have issued valuation warnings, yet Bank of America’s survey shows record-low cash among asset managers, and Wall Street forecasts further double‑digit US gains-underscoring bullish sentiment despite bubble fears. Not all agree on a bubble: T Rowe Price argues today’s AI leaders are profitable with rising ROE, modest debt, and no credit stress, so they are not advocating cuts or heavy hedges. Neuberger Berman is diversifying toward cheaper AI exposure in Asia while retaining US positions. BlackRock expects continued gains but warns of heightened volatility, advising investors to prepare for a “bumpy ride” in 2026. https://www.ft.com/content/48d9c100-0ec6-4edf-9395-eb44879ea5c6#comments-anchor

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FT says, Leading asset managers are positioning for potential… | Newnex