Top fund manager goes 52.45% into cash. Is this a sign that a crash is on the way?

1 min Read Published: 29 Mar 2010

Jupiter Asset Management’s Philip Gibbs has put more than half of his £1.2 billion Jupiter Financial Opportunities fund into cash.

According to its latest factsheet, the fund held a 52.45% cash position as at the end of February. Of the 47.5% invested in the stock market 46.35% has been put into his top 10 holdings with an additional 1% - totalling £12 million - spread across 18 holdings.

Gibbs (pictured), who is AA-rated Citywire and is the only manager to have been continuously rated since Citywire launched its monthly ratings service in September 2002, held a 12% cash position at the turn of the year.

He employed a similar strategy back in 2008, which proved to be a successful buffer against the credit crunch and the latest move suggests he has become increasingly bearish about the near term prospects for financials.

(source Citywire)

This is a particularly bold move by a highly rated fund manager. Could it be a sign that the 'ovredue' stockmarket correction is imminent?