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Komfie Manalo, Opalesque Asia:

The Netherlands-based asset manager Saemor Capital said it remains cautious on European equity markets and continues to be neutrally positioned in its multi-factor model, with political risk rising and global equity valuations not offering much room for error.

The Saemor investor relations team said in its monthly report, "We do not see much reason for the recent market rebound to last. Moreover, August and September are typically not the best months for equity markets. Our stock selection model is increasingly pointing towards defensive names after earnings downgrades to financials and domestic cyclicals in the UK. Most low beta names look relatively expensive and over-owned though."

The team added that exporting sectors such as capital goods and IT that also rank well in Saemor’s model and look more attractive in comparison. This is helped by a rebound in emerging market equities and commodities since February this year. Risks to the firm’s cautious positioning could be strong economic momentum, strongly rising global bond yields and a continued risk-on stance by global investors, moving back into the most lagging European financials.

Saemor Europe Alpha Fund fell in July on Brexit pressure

The Saemor Europe Alpha Fund retreated 0.2% in July. The portfolio was cautiously positioned going into the month, expecting further pressure on earnings expectations following Brex......................

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