Hedge Fund Betting on Years of Low Rates Puts 99% Cash in Stocks
- Valley Forge has added equities, cut cash to 7-year low of 1%
- Stocks still cheap in sustained low-rate environment: founder
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A hedge fund that’s delivered almost double the returns of the S&P 500 Index this year is going all-in on stocks -- at least the safe and stodgy ones.
Valley Forge Capital Management, whose $460 million of assets is invested in just nine stocks, has cut its cash holdings to 1%, the lowest in seven years and compared with an average 20% in the fund’s history, according to founder Dev Kantesaria.