×

Top Hedgies Scaling Back on Stock Exposure

Hedge funds are sometimes called the smart money due to their investing prowess and according to top hedge fund manager Anthony Scramucci the smart money is turning away from stocks, at least on a relative basis.

Scaramucci, also known as TheHedge on CNBC's Fast Money, tells us that he’s seeing broad scale de-risking. In fact he says the smart money is taking their exposure to equities down to 30% from 60% in some cases.

And he says all the uncertainty introduced by the tragic events in Japan is a key factor influencing their decision. But it's not the only factor. There are two others.

Another is the sharp increase in the price of oil . “A 10-dollar increase per barrel in oil is something like a 3/10 of a percent move lower in GDP,” he says.

Also Scaramucci says the smart money is worried about a slowdown in Europe. Faced with the specter of inflation the ECB appears likely to raise rates, he says. And he doesn't think the fragile nature of the recovery will hold much sway. "Historically they've had terrible timing with rate hikes."

For these three reasons, Scaramucci says risk assets are growing less attractive to hedge funds.

Vote
Vote to see results
Total Votes:

Not a Scientific Survey. Results may not total 100% due to rounding.

But just because other hedge funds are taking off risk, doesn’t mean that Scaramnucci shares their caution. “My personal bias is that there’s still room to go in the equity markets.”

What do you think? We want to know!

* Anthony Scaramucci runs SkyBridge Capital, a leading alternative asset manager with more than $7 billion under management. Every week on Fast Money, Scaramucci, aka 'The Hedge', takes you behind the hedges, giving you an unprecedented look at the names getting the most chatter amongst the hedge fund community.


______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On March 9, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Steve Weiss Owns (SHAW); Steve Weiss Owns (FWLT); Steve Weiss Owns (MSFT); Steve Weiss Owns (MEE); Steve Weiss Owns (CSCO); Steve Weiss Owns (QCOM); Steve Weiss Is Short (ANF); Guy Adami Owns (AGU); Guy Adami Owns (C); Guy Adami Owns (GS); Guy Adami Owns (INTC); Guy Adami Owns (MSFT); Guy Adami Owns (NUE); Guy Adami Owns (BTU); Joe Terranova Owns (VRTS); Joe Terranova Owns (C); Joe Terranova Owns (GS); Joe Terranova Owns (PNC); Joe Terranova Owns (USB); Joe Terranova Owns (JPM); Joe Terranova Owns (UPL); Joe Terranova Owns (ABT); Joe Terranova Owns (CVI); Joe Terranova Owns (RSX); Joe Terranova Owns (CNQ); Joe Terranova Owns (MS); Joe Terranova Owns (PBR); Joe Terranova Owns (BAX); Joe Terranova Owns (TEVA); Joe Terranova Owns (BTU); Joe Terranova Owns (CNX); Joe Terranova Owns (SU); Pete Najarian Owns (AAPL); Pete Najarian Owns (GE); Pete Najarian Owns (NTAP); Pete Najarian Owns (GE); Pete Najarian Owns (TCK)

For Abdullah Karatash
No Disclosures

For Alan McKim
No Disclosures

For Anthony Scaramucci
No Disclosures

For David Riedel
No Disclosures

CNBC.com with wires.