Although UK stocks have been a mainstay of the firm’s portfolios, he is underweight UK currently and is holding lower levels of sterling.
“The UK has gone from being one of the highest growth countries in the G7 to being at the bottom,” he said.
“As an investor, we can’t be nationalistic in any way shape or form. Realistically, the US, Europe, Japan and emerging markets look more attractive than the UK right now. Six months from now, things might be different.
“Still, I like to diversify our portfolio across sectors, countries and currencies. Yes, there are some good stocks and investment managers in the UK but right now, it’s an underweight.”
Others, like Momentum Global Investment Management’s James Klempster, argue that the UK is far from irrelevant in the longer term.
“It’s difficult to see the UK as the stable, global power house that we would like to be thought of in the short-term. But the long-term reasons the UK remains an attractive destination for capital hasn’t fundamentally changed.”
That may be the case, but there’s no denying that bearishness toward the UK is becoming ubiquitous and is likely to stay that way for the next two years, at least.
