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John Husselbee: Grexit not a game changer

The scale and scope of the investment risks associated with the Greek crisis are in-line with those which our risk-targeted investment portfolios were designed to absorb. We are viewing the fluctuations in financial markets as an opportunity to look for mispriced assets and investment opportunities.

The potential for financial contagion is far less than during the 2009/10 sovereign debt crisis when the Greek bailout triggered subsequent bailouts for other ‘peripheral’ economies – Ireland and Portugal. The difference this time round can be seen through the yields of peripheral nations, which previously spiked alongside Greece’s, but which are currently showing far less correlation.

Mark Williams, Asia Income: China offers value despite bubble talk

Chatter about a bubble in Chinese equities has increased since early April’s huge rise in Hong Kong listed shares. We have increasingly faced investors’ questions along these lines and, more empirically, the FT’s search results for ‘China bubble’ have almost doubled to 96 from the market’s peak on 19 April, compared to 53 in the same period prior to that date.

 

Our view has only changed slightly: where we found very cheap companies throughout last year, providing a good combination of growth and income which is better than that available elsewhere in the Asia Pacific ex Japan region, we now find stocks trading at almost fair value. At the recent peak, our entire Chinese exposure (all through Hong Kong listed companies) traded at just over 11x forward earnings, with over 10% expected growth to 2016 and a 3.3% forecast dividend yield. Otherwise our view remains the same: that China currently provides the greatest opportunities for us.

Anthony Cross, Economic Advantage: Secrets to successful investing in AIM

20 years ago in June 1995 the Conservative Party was preparing for a leadership race following John Major’s ‘back me or sack me’ resignation, Arsenal fans were celebrating the signing of Dennis Bergkamp for a British record £7.5m fee, and I was busy researching smaller companies, developing the ideas that I would later document in the Liontrust Economic Advantage process. In the same month, the London Stock Exchange launched its new junior market, the Alternative Investment Market, which is now known simply as AIM.

John Husselbee: Is good performance the result of skill or luck?

When I initially proposed this series of fund manager interviews, I emphasised the importance of supplementing quantitative analysis of a fund manager’s investment performance with behavioural analysis, to better understand his or her motivations and characteristics.

My latest interview, with Nick Kirrage, co-manager of the Schroder Recovery Fund and Schroder Income Fund, touched upon the significance of both statistical and behavioural factors in the fund management industry.



Disclaimer

Any opinions expressed should not be construed as advice for investment in any [product or] security mentioned or which may form the underlying content of any topics discussed in this blog.  The information and opinions provided in this blog take no account of the investors’ individual circumstances and should not be taken as specific advice on the merits of any investment decision.   Any opinions or information provided has been based on sources we believe to be reliable at the time of this blog’s preparation: no representation or warranty, express or implied, is made as to the accuracy, reliability or completeness of such information.  Neither Liontrust, nor any of its partners, employees, representatives or agents accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of our research or its contents.

Liontrust, its partners and/or employees may have had, have or will have positions in the securities (or related financial instruments) which are those referred to, or those underlying the content discussed in this blog.

Any individual who chooses to invest in any securities should do so with caution. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a regulated investment advisor or licensed stock broker before investing.

Shares in companies referred to may be relatively illiquid and hard to trade, therefore riskier than other investments and there could be a large bid/offer spread, so if you need to sell soon after you’ve bought, you might get less back than you paid. This can make them riskier than other investments.