UBS, manager of $2.3 trillion in global assets, said that high net worth individuals, hedge funds, mutual funds, pension funds, insurance companies, and sovereign wealth funds were all net buyers of global equities at the turn of the New Year and during the first two weeks of 2011.
“U.S. clients continued their net buying for a third straight 4-week period,” said UBS strategists in their bi-weekly client flow report entitled ‘Net Buying All Around.’ “Although long only funds slowed their net buying, intermediaries and hedge funds became net buyers.”
The S&P 500 is up 3 percent for the year and the Dow Jones Industrial Average rose above 12,000 today as flows such as those described above keep coming. The iShares MSCI World Index Fund is also up 3 percent for this year, reflecting the enthusiasm for U.S. and foreign clients in buying global equities, not just in this country.
Clients are following like clockwork the so-called January effect, which refers to a rally that comes at the beginning of the year as investors looking at the strong returns of the previous year don’t want to miss out again.
On a sector level, UBS said clients were net buyers of technologyand industrials . The client groups, especially hedge funds, were negative on financials .
“UBS Client Flow Watch is a flow product based on internal UBS client activity of cash transactions only,” explains the firm in each report. “The UBS proprietary database aggregates all US Equities cash transactions executed by UBS worldwide to analyze net flow (buy orders less sell orders).”
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Trader disclosure: On Jan. 26, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Guy Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE) and (BTU). Karen Finerman owns (AAPL), (BAC), (BP), (C), (GLW), (GOOG), (HPQ) and (MSFT). Karen Finerman owns (BAC) leaps. Karen Finerman owns (JPM) and (JPM) leaps. Pete Najarian owns (BAC) call spreads. Pete Najarian owns (C). Pete Najarian owns (F) calls and bonds. Pete Najarian owns (GE). Pete Najarian owns (JPM) call spreads. Pete Najarian owns (MS). Pete Najarian owns (TCK). Pete Najarian owns (YHOO) and (YHOO) calls. Josh Brown owns (BAC), (GE), (JPM), (QCOM), (NVDA) and (GLD).
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KAREN FINERMAN
Finerman's firm is short (MDY)
Finerman's firm is short (SPY)
Finerman's firm is short (IWM)
Finerman's firm is short (IJR)
Finerman's firm is long S&P puts
Finerman's firm is long Russell 2000 puts
Finerman's firm owns (AAPL)
Finerman's firm owns (BBY)
Finerman's firm owns (BP)
Finerman's firm owns (HPQ)
Finerman's firm owns (IBM
Finerman's firm owns (JPM) and (JPM) leaps
Finerman's firm owns (MCD)
Finerman's firm owns (MSFT)
Finerman's firm owns (TGT)
Finerman's firm owns (WMT)
GUY ADAMI
Adami's wife works for (MRK)
BRIAN KELLY
Accounts Managed By Kanundrum Capital Own (FCX)
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Own (MCP)
Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own (TBT)
Accounts Managed By Kanundrum Capital Are Long The Euro
Accounts Managed By Kanundrum Capital Are Short The Yen
Accounts Managed By Kanundrum Capital Are Short (XLF)
JOSH BROWN
Brown owns (AAPL) for clients
Brown owns (AMZN) for clients
Brown owns (AXP) for clients
Brown owns (BAC) for clients
Brown owns (BP) for clients
Brown owns (C) for clients
Brown owns (C) for clients
Brown owns (CSCO) for clients
Brown owns (F) for clients
Brown owns (GE) for clients
Brown owns (GDXJ) for clients
Brown owns (GLD) for clients
Brown owns (GOOG) for clients
Brown owns (HPQ) for clients
Brown owns (IBM) for clients
Brown owns (JNJ) for clients
Brown owns (JPM) for clients
Brown owns (MCD) for clients
Brown owns (MOS) for clients
Brown owns (MSFT) for clients
Brown owns (MS) for clients
Brown owns (NVDA) for clients
Brown owns (QCOM) for clients
Brown owns (T) for clients
Brown owns (UNH) for clients
Brown owns (WFC) for clients
ANDY BUSCH
Busch has no disclosures
MIKE KHOUW
Cantor Fitzgerald & Co is a market maker in (AMZN)
Cantor Fitzgerald & Co is a market maker in (F)
DAVID RIEDEL
Riedel has no disclosures
COLIN GILLIS
BGC Financial LP and/or its affiliates, expect to receive, or intend to seek, compensation for investment banking services within the next three months from (MSFT)
No disclosures on (AMZN)
