Money managers under the microscope
Interesting to see increased short interest in Kazakhmys.
This week we highlighted Cazenove hedge fund manager Tim Russell’s caution about the miner’s valuation and the consistency of its earnings.
According to Data Explorers, the short base has been rising steadily over the past three months to 0.9 pct from 0.1 pct.
While still up more than six-fold on their price a year ago, Kazakhmys’s shares have generally been on the way down in the past two weeks from their 12-month high. The short interest suggests others share Russell’s view.
Cazenove’s Tim Russell, one of the UK’s best-regarded fund managers, reckons cyclical stocks — the winners in 2009 – look expensive while defensives look cheap and says he may increase his bets.
He gives the examples of Kazakhmys and GlaxoSmithKline, which are both on roughly 10 times earnings. Whereas Glaxo has tended to report results ahead of forecasts in recent years, Kazakhmys has tended to disappoint, he says.