Hamish Douglass, the Sydney-based stock picker whose global fund beat 97 percent of peers over five years, is holding the most cash since 2009 after selling shares in Wal-Mart Stores Inc., McDonald’s Corp. and Nestle SA.

Magellan Financial Group Ltd. boosted cash to about 14 percent of its A$7.5 billion ($5.8 billion) global equity fund as of early April and may increase it further this year amid distortions in markets stemming from a looming change in US monetary policy, said Douglass, its chief executive officer. He’s concerned investors are mispricing risk and that stock and bond prices are too high.

“If we’re right, we’re going into a stiff headwind over the next few years,” Douglass said by phone last week. “In equities, we’re in rarified air — it’s getting pretty thin up here. Through the lens we’re looking at, quite a lot of things look pretty expensive.”