Kingswood: Positioning cautiously for a long-term recovery

Overweight to UK small and mid caps trimmed

Cutting back on an overweight to UK small and mid caps and increasing exposure to credit are some of the ways Kingswood's Rupert Thompson and Dave Winckler are positioning portfolios as we "near the bottom" of the global coronavirus pandemic.

CIO Thompson said they are "a little more cautious than average". "Firstly this is because of the size of the bounceback we have seen in stockmarkets. Yes, the sell-off was equally as unprecedented, but it is slightly crazy the US market is back up to where it was six months ago," he explained. Rathbones' Coombs: Why we are protecting funds against another stockmarket freefall "Secondly, there is an awful lot of uncertainty. Markets seem to be pricing in a V-shaped recovery within a year, which to us looks rather improbable - but we are not  massively bearish." The team has ther...