Posted August 24, 2014 1:49 pm by Comments

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:

Leave a Reply