SYZ Asset Management’s co-head of multi-asset has pushed cash levels in the firm’s flagship fund to their maximum allocation of 30%.
He currently has 30% in cash, 30% in equities – albeit with an emphasis on Europe over the US – 8% in short-term bonds and the remainder in a mixture of diversified assets.
‘There is a real risk of the Trump trade deflating and this will impact US small caps and, while we have found some opportunities in energy since the oil price dropped, we are operating with a very cautious approach,’ Kos said.
‘We are keeping a close eye on the French election and the uncertainty which surrounds Marine Le Pen, as we think the markets may not be counting in the true degree of risk which is related to her having a meaningful impact on the market.’
Speaking to Citywire Switzerland in January 2017 Kos voiced concerns about bond market valuations, which is why he prefered negative duration since summer 2016.
At the time he also favoured Turkey and Mexico within the emerging markets space and had one of the biggest allocations to Portugese bonds.
On a three-year basis in euro terms, the Oyster Multi-Asset Diversified fund returned 18.5% to the end of February 2017. This compares to a 9.4% return by the average manager in the Multi Asset Flexible sector over the same period.