Fund managers remain cautious across the board even though most of the market has pulled back by a little over 10% from its peak, and it doesn't look like that will change anytime soon. Further, most fund managers remain overweight on financials, cash and offshore assets, according to Bank of America Merrill Lynch analysts John Morris and Nadeem Dawood. They put out the latest edition of their Fund Manager Survey this week. Hedge fund positioning The analysts said according to the numbers, 80% of fund managers believe the market is currently overvalued. That's unchanged from their last reading, although they noticed "subtle" changes in other areas. For example, they report that on a 12-month basis, fewer fund managers are bearish on equities. Also only 60% of managers only see Sell opportunities right now, compared to 100% of the respondents in their May survey. Further, domestic cash levels increased to 15%, which is only 3 points off BAML's survey highs. In the near term, BAML reports that investors are adding to resources, but in the long term, they're more bearish on commodities. Interest rate hike expected in... More