Thu, May 26, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Value investors face a difficult opportunity set as asset prices increase

Tuesday, April 09, 2013

Bailey McCann, Opalesque New York:

Investors are facing "the most difficult opportunity set," they can face according to a recent Opalesque Radio interview with James Montier. Montier is a member of GMO's Asset Allocation team. Prior to joining GMO in 2009, he was co-head of Global Strategy at Société Généralé. He has authored several books including the well known Behavioural Investing: A Practitioner's Guide to Applying Behavioural Finance. He says that under current market conditions, investors may have a hard time finding cheap opportunities. For value investors like Montier, it can be difficult to participate in markets like this.

"We now find ourselves in a world where everything is expensive," Montier says noting that even holding cash is going to be punished as the US Federal Reserve bank is pushing investors to create a new bubble, albeit more rational than the last.

In this environment he explains that it makes the most sense for investors to hold high quality equities, and take advantage of opportunities like emerging and international markets exposures as they arise. He points to the European equities markets which were, at one point, pricing in the collapse of the Euro offering value investors cheap opportunities.

These opportunities can come and go quickly in this market environment, however, and Montier says it also makes sense to keep a fair amount of ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Paul Tudor’s hedge fund trims fee amidst poor performance, keep investors[more]

    Komfie Manalo, Opalesque Asia: Paul Tudor’s $11.6bn hedge fund firm Tudor Investment Corp. announced on Monday it would slash down fees of one of its biggest fund to 2.25% of assets and 25% of profits amidst backlash arising from poor performa

  2. Ares Capital to buy American Capital in $3.4 billion deal[more]

    From PIOnline.com: Ares Management's business development company Ares Capital Corp. is buying troubled BDC American Capital for $3.43 billion, said a joint news release by the BDCs and another release by Ares Management. Ares Capital Corp.'s assets are expected to grow to about $13.2 billion when t

  3. Performance - Hedge fund ETFs take a battering, Have long-short credit funds delivered?[more]

    Hedge fund ETFs take a battering From ETFStrategy.co.uk: It was a blow for the hedge fund world when Hillary Clinton’s son-in-law Marc Mezvinsky announced he would be closing his Greek-focused fund after it plummeted in value by 90%, just two years after it launched. For passive investor

  4. West Virginia objects to Alpha Natural sale to hedge fund[more]

    From AP/Heraldcourier.com: West Virginia's environmental authority has filed an objection to the proposed $500 million sale of Alpha Natural Resources' assets to a hedge fund, arguing that the deal could leave the state holding hundreds of millions in reclamation liabilities. The Register-Hera

  5. Launches - Man Group and American Beacon launch new emerging debt fund, Nikko AM launches new Japan equity UCITS fund[more]

    Man Group and American Beacon launch new emerging debt fund American Beacon Advisors, an experienced provider of investment advisory services to institutional and retail markets, launched the American Beacon GLG Total Return Fund today. The Fund became effective May 20. The America