While he agrees that sentiment is very negative currently, he says it is important to note that while the risks are real, there is already a lot in the price.
“The entire world thinks that China is the black hole that is dragging global economic activity down right now. But, that is often where opportunity sits as well. If you look at where these countries now sit, where their currencies are, these are levels that have resulted historically in very strong levels of positive performance if you are willing to take a 12 month view.”
However, while there are opportunities, he says it is important to be selective. For example, current account deficits and commodity exposures mean he is not particularly enamoured with South East Asia.
“When you think about alpha, It is not about putting one big bet on black or red. Rather it is about a lot of well thought out bets that are focused on where the alpha opportunities are different.”
