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Hedge Funds Were Net Sellers Of U.S. Stocks (BAML h/t The Reformed Broker)
The S&P 500 was down 1% last week and Bank of America Merrill Lynch clients were net buyers of U.S. stocks.
“Inflows were led by private clients, whose purchases of US equities were the largest since January. This was their third consecutive week of net buying. Institutional clients were also net buyers following two weeks of net sales, while hedge funds were net sellers for the second consecutive week…
“BofAML hedge funds and private clients flows have been mirror images of one another over the past few months. Hedge funds had been net buyers throughout April and May as the market hit new all- time highs, and were the only group exhibiting faith in the rally. Private clients were sellers over the period, and have begun to buy stocks over the last two weeks—as hedge funds have finally taken profits. In contrast, institutional clients have seen little change to their cumulative flows over this period, alternating between buying and selling.”
Vanguard Group has launched ‘At-Cost-Cafe’ which sells coffee at 26 cents a cup, which is one-fifth the average price. On their site, Vanguard writes “our average expense ratio is 1/5 the industry average.”
“The café is designed to raise awareness among investors about the impact of costs and help them understand how minimising costs in their investment portfolios can potentially enable them to save more,” according to a press release.
The coffee truck is expected to hit San Diego, San Francisco, Chicago, Washington D.C., New York and Boston and is expected to spend three days in each city. The truck is in New York till tomorrow.
Wells Fargo has hired nine advisors from Morgan Stanley, Merrill Lynch and RBC Capital Markets with a combined $1.12 billion in assets under management, according to Lorie Konish at OnWallStreet.
John Lyon and Jeannette Dobbyn joined from Morgan Stanley, and were the largest team by assets. James Hunt, Anthony Bavedas and Brian Stahler also joined from Morgan Stanley.
Philip Weber and Bruce McMillan joined from Merrill Lynch, and Peter Vrooman and Jonathan Sarver joined from RBC.
Markets are eagerly watching for clues on the Fed taper. In that backdrop, Societe Generale’s Alan Bokobza put together a chart that shows returns on every major asset class since the Fed began stimulating in November 2008.
North America Had The Most Millionaires In 2012 (The Wall Street Journal)
North America had the most millionaires in 2012, according to World Wealth
Report 2013 by Capgemini and RBC Wealth Management. 3.73 million high net-worth individuals in North America has $12.7 trillion in combined assets. The Asia-Pacific market was the second largest with 3.68 millionaires that had over $12 trillion in assets.
The global count of millionaires is expected to increased 6.5% annually over the next three years. “North America’s lead in both population and wealth is likely to be eclipsed again in the future by Asia-Pacific,” Jean Lassignardie, of Capgemini Global Financial Services said in a statement cited by the Wall Street Journal.
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