Luke Newman, portfolio manager on the UK Absolute Return strategy, outlines positioning in light of the recent rotation in equity markets. He also discusses the importance of investing in highly liquid areas of the market.
A long-short strategy has the toolkit to be able to adjust to volatility in the market. Recently, markets have seen a rotation between high quality growth companies and value-orientated cyclicals.
The strategy maintains a neutral positioning to the UK market. However, Luke remains alert to the opportunities that may arise as a consequence of clarity surrounding the Brexit process.
With liquidity a key focus for the strategy, and Luke highlights the importance of investing in highly liquid areas of the market.
These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.
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