Money managers under the microscope
News and views on the asset management industry from Reuters and elsewhere:
Global fund managers embrace risk after QEII - Morningstar
VAM launches commodity equity fund - Fund Strategy
Hedge fund index up 1.92 percent in October - HedgeWeek
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.
This year’s stock market rebound has turned into a bubble, or at least that’s the view of closely-followed hedge fund manager Crispin Odey.
Odey, who called a bull market back in April, reckons quantitative easing has fuelled investors’ desire to get out of cash and government bonds and into real assets, leading to a stampede.
Stocks may have enjoyed a huge rebound this year (the S&P 500 is up 50 pct from its March low), but the rally is based on speculation, according to one hedge fund firm.
With a headline like that, you’d think this would be a story about investing in Bonds.
But in fact a survey by boutique fund firm Moonraker Fund Management shows U.S. hedge fund managers are buying physical gold to protect their wealth against high levels of inflation.