Citywire’s Dylan Lobo has interviewed three of the top ‘absolute return’ fund managers to get their views on the UK stock market after recent rises. These fund managers are tasked with the job of making money for investors in all market conditions.
The UK’s leading absolute return fund managers are banking on the UK stock market moving through the remainder of the year without another major correction.
To reflect this, the managers are sticking with their bias towards the long side, which has been profitable for them in the summer rally.
Cazenove’s Tim Russell underlines just how profitable a long strategy has been recently, highlighting that only 25 stocks on the FTSE 350 fell by more than 1% last month.
But the market is divided on how long the rally can continue. The bears believe we are due another correction before the year is out, while the bulls expect equities to go from strength to strength in the final quarter.
SVM’s Colin McLean, manager of the £22 million SVM UK Absolute Alpha fund, sits firmly in the latter camp.
He believes the FTSE, which is up by around 50% from its low earlier this year, has the potential to rise another 10% to finish at around the 5,500 mark at the end of 2009.
He says: ‘The consensus view is that there will be another market correction in September. However, a lot of leading economic news has been good, particularly in the industrial sector, which points to a V-shaped recovery. There’s a lot of cash still sitting on the sidelines, which is likely to be reinvested as investors become less risk averse.’
Shares will rally further – the top managers say
Citywire’s Dylan Lobo has interviewed three of the top ‘absolute return’ fund managers to get their views on the UK stock market after recent rises. These fund managers are tasked with the job of making money for investors in all market conditions.
The UK’s leading absolute return fund managers are banking on the UK stock market moving through the remainder of the year without another major correction.
To reflect this, the managers are sticking with their bias towards the long side, which has been profitable for them in the summer rally.
Cazenove’s Tim Russell underlines just how profitable a long strategy has been recently, highlighting that only 25 stocks on the FTSE 350 fell by more than 1% last month.
But the market is divided on how long the rally can continue. The bears believe we are due another correction before the year is out, while the bulls expect equities to go from strength to strength in the final quarter.
SVM’s Colin McLean, manager of the £22 million SVM UK Absolute Alpha fund, sits firmly in the latter camp.
He believes the FTSE, which is up by around 50% from its low earlier this year, has the potential to rise another 10% to finish at around the 5,500 mark at the end of 2009.
He says: ‘The consensus view is that there will be another market correction in September. However, a lot of leading economic news has been good, particularly in the industrial sector, which points to a V-shaped recovery. There’s a lot of cash still sitting on the sidelines, which is likely to be reinvested as investors become less risk averse.’
via Shares will rally further – the top managers say | Personal Investor | Citywire .
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