Seventy percent of money managers polled expect the unprecedented level of volatility in the U.S. equity markets to continue through 2012, according to Russell Investments quarterly Investment Manager Outlook survey.
Rachel Carroll, Russell consulting client executive, said in an interview that despite the high volatility number, 63% of the managers are not planning any changes to their portfolios.
In the survey of 200 managers conducted Nov. 2-11, manager bullishness in U.S. large-cap growth equity and emerging markets equity saw big declines. According to the survey, 58% of managers were bullish on large-cap growth, 15 percentage points less than the previous quarter's survey. Also, 56% were bullish on emerging markets stock, down 18 percentage points from the previous survey.
Ms. Carroll said for the first time in the history of the 5-year-old survey, U.S. large-cap value equity was the most-favored style among managers, with 61% bullish on the category, she said.
Ms. Carroll said there is a feeling among managers that higher-quality, lower-cap value stocks were oversold in the third quarter along with the fact that the yield they can get from large-cap value equities is better than investing in Treasuries.
