Why Are Fund Managers Holding More Cash?

Warren Buffett, along with other money managers, is currently holding record levels of cash - should investors be worried about a correction?

Holly Black 29 August, 2018 | 8:47AM

Cash

At times of uncertainty many fund managers turn to cash to shore up their portfolios. Keeping money in the bank can help to limit volatility and also means investors have cash ready to put to work if they spot an opportunity.

Berkshire Hathaway (BRK.A), the investment holding company run by infamous investor Warren Buffett, is currently running record levels of cash in its portfolio. Almost £100 million of the firm’s £546.7 million of assets are in cash, with the renowned investor recently informing shareholders he and his business partner were struggling to find “good acquisitions at sensible prices”.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Berkshire Hathaway Inc A267,954.00 USD0.00
BMO UK Mid-Cap C Acc74.87 GBP-1.26
JOHCM UK Opportunities Y GBP Acc1.34 GBP-0.96

About Author

Holly Black  is Senior Editor, Morningstar.co.uk

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