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Investors Hold Cash as Hedge Funds Cut Debt, Merrill Says

Global investors increased their cash holdings to the highest in a year this month as hedge funds slashed the level of borrowed money invested in stocks, a BofA Merrill Lynch Global Research survey showed.

A net 18 percent of 282 respondents, who together manage $828 billion, were “overweight” cash, the highest since June 2010. That compares with 6 percent in May. Hedge funds cut their so-called gearing levels to 1.27 times capital from 1.53 and an index of risk appetite dropped to 38 from 43, falling below its long-term average of 40 for the first time in nine months.