FE Trustnet has reported that Daniel Lockyer, the manager of the £30m PFS Hawksmoor Distribution fund with Hawksmoor Investment Management, has been cutting down his exposure to emerging markets across his portfolios.
“We’ve just been banking some profit in emerging markets… At the back end of last year we had valuation support and saw it was not very well owned in asset allocation surveys. It wasn’t really a strong view on earnings, but more a reflection of how cheap it was. With the US doing so well, we couldn’t see that emerging markets would continue to do so badly… Last year it was a drag on performance, but this year it has helped. Now we think it is necessary to take into account that our portfolio is quite exposed to emerging markets, and so we have been scaling back.”
Lockyer still thinks emerging markets are attractively valued, though thinks the risks of owning them have risen in the last few months. He also suggested taking positions in lower beta funds which tend to protect better against the downside than the MSCI Emerging Markets index.
To read the whole article, Emerging markets are rallying: So is it time to invest or sell?, go to the website of FE Trustnet.
Similar Posts:
- Experts: Tread Carefully With Emerging Market Investments (FE Trustnet)
- Margetts’ Ricketts: Low Oil Prices Mean Asia and Emerging Market Funds Can Keep Rallying (FE Trustnet)
- Margetts Fund Management Manager: Emerging Markets Rally Has Gone Too Far (FE Trustnet)
- Psigma’s Gregory: Sell Catch-All Global Emerging Market Funds & Be More Selective (FE Trustnet)
- Skerritts’ Merricks: “A Strong Dollar is Rarely a Good Thing for Emerging Markets” (FE Trustnet)
- Chinese Stocks: Cheap Long-term Play or Value Trap? (FE Trustnet)
- Mark Mobius: Biggest Risks Facing Emerging Market Funds (FE Trustnet)
- Psigma’s Gregory: “We Like India, We Like China” (FE Trustnet)
- Is the Thailand Coup a Major Threat to Asian Equity Funds? (FE Trustnet)
- No Emerging Markets Crisis According to Mark Mobius (FE Trustnet)
- Ways to Become Over Exposed to Emerging Markets Without Knowing It (FE Trustnet)
- Shift Your Emerging Market Consumer Exposure from MNCs to Local Stocks (FE Trustnet)
- Why Two Fund Managers Still Believe in Macau Casino Stocks (FE Trustnet)
- Jupiter’s Croft: If History Repeats Itself, Russian Stocks Could Double (FE Trustnet)
- Hermes’ Greenberg: Overweight in India But Avoiding Modi Stocks (FE Trustnet)
