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Whether They Meant To or Not, Stock Funds Positioned for Tax Cut

  • Small-caps, most-taxed companies show little priced in
  • BofAML study finds funds favor benficiary of a lower tax rate
Trading On The Floor Of The NYSE As U.S. Stocks Fall, Dollar Slumps
Photographer: Michael Nagle/Bloomberg
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Donald Trump’s plan to cut corporate taxes seem like a done deal to at least one group of investors.

While it may not have happened on purpose, mutual-fund mangers are set up for that outcome. According to Bank of America Corp., they favor companies poised to benefit from lower taxes while shunning those that may suffer.