Big money pulls back—a bit

Chris Ratcliffe | Bloomberg | Getty Images

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.