The outlook for Europe, more than most other developed world geographies, depends largely on whether you are a top-down or a bottom-up investor.
Economic pundits, for example, should be able to see a better outlook for northern Europe than southern though overall growth is still zero.
For a manager or buyer of long-only funds, on the other hand, Europe is essentially an asset allocation choice for an optimist; for a long/short investor, Europe is the playground for pessimists too.
Greg Bennett, manager of the Argonaut Absolute Return fund looks to take advantage of earnings surprises at a stock level on both the up and down side. Here he explains the risk/return profile he is looking to establish from alpha opportunities on the short side – the key to his fund’s success, he says – alongside the money-making opportunities when going long.
He also describes his ideal market environment – how close is it to what we have now?
