Global Positioning in Stocks

BofA Global Research highlights that well-owned stocks with positive momentum (Crowded Positives) have significantly outperformed contrarian strategies over the past year. In April, global long-only funds rotated away from Semiconductors and the US, moving instead toward Japan, Energy, and Materials.

Key Takeaways

• 1.Contrarian strategies have struggled recently as the most well-owned global stocks (top 20%) averaged a 47.0% return over the last 12 months, significantly outperforming low-ownership stocks (32.4%).
• 2.Long-only funds rotated aggressively in April, moving into Materials (+$6.8bn) and Energy (+$5.3bn) while reducing exposure to Semiconductors (-$50.6bn) and Software (-$9.9bn).
• 3.Geographically, Japan was the primary beneficiary of fund inflows last month (+$4.9bn), while the United States experienced massive outflows (-$61.4bn).

Table of Contents

• Executive Summary
• Methodology
• Four Stock Screens
• Equity Flow - Long-Only
• Positioning versus Benchmark - Active Long-Only
• Stock Positioning Charts
• Appendix A: Performance Overview
• Appendix B: Positioning and Triple Momentum Performance Summary

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