Cash Is King for Top Euro Investors in 'Freight Train' Market

Top-performing European equity fund managers are bracing for further market declines by hoarding cash and buying “mega-cap” pharmaceutical and tobacco stocks. Investors held the most cash in three years last month amid the biggest European equity sell-off since October 2008, a month after Lehman Brothers Holdings Inc. went bankrupt, according to a survey by Bank of America Corp. The best performers aren’t taking risks any time soon.