The so-called smart money is pulling back from market risk, with fund managers taking down exposure to stocks, increasing cash holdings and buying protection against a sharp selloff.
It's hardly panic though. Managers of hedge funds, mutual funds and other large investors are still fundamentally optimistic despite the recent increase in caution. Most expect Greece to stay in the euro zone and expectations for global growth remain near their highs, according to a new Bank of America Merrill Lynch survey.
The bank, which provides services to many fund managers, surveyed 207 money management clients with a combined $562 billion in assets from June 5 to June 11. Notable findings include: