Funds Hub

Money managers under the microscope

Light at the end of the tunnel?

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rtxb5afThere’s no shortage of bad news in the financial world at the moment.

But one top hedge fund manager believes that equities could soon be heading for a very sharp rally.

Cazenove’s Neil Pegrum — whose fund┬ámade 9.4 percent last year while markets were plummeting — believes UK equities could soon be enjoying a “March 2003″ rally.

While it seems a long time ago now after the market’s recent woes, March 2003 marked the start of a 4-year bull market which took the FTSE 100 from less than 3,300 to more than 6,700 and saw clever stockpickers reap huge rewards.

Pegrum argues that stocks are already discounting a lot of bad news. He adds that equities look forwards rather than backwards and therefore, as in March 2003, can rally even as analysts are still downgrading corporate earnings forecasts.

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