Global managers surveyed by Merrill Lynch showed 15% were overweight U.S. equities in February, up from 7% in January, and 31% want to overweight U.S. equities over the next 12 months.
In February, 34% of managers were underweight equities overall, the same as in December, down from 28% in January, according to Merrill Lynchs February survey of global fund managers.
The survey shows that bond weightings dropped slightly to 7% in February from 11% in January.
Also, 15% were underweight commodities in February, compared to 32% underweight in December.
Higher risk appetite, rising commodity sentiment and a strong valuation case could encourage further investment in energy and materials sectors, Gary Baker, Banc of America Securities-Merrill Lynch head of EMEA Equity Strategy, said in a news release.
Fund managers also are growing increasingly optimistic about economic growth in China, with 21% predicting lower growth there over the next 12 months, down from 70% in January, according to the survey.
Forty-three percent predict deteriorating profits in China over the next year, down from 63% in January, and 49% expect inflation to fall over the next year, down from 64% in January.
The survey included 212 fund managers with assets under management of $599 billion.