Cowley: Europe has helped us survive 'brutal year'

A long Europe position has helped offset an otherwise "brutal year" for the Old Mutual Global Strategic Bond fund, according to manager Stewart Cowley.

In its interim results last week, Old Mutual Global Investors said the £617m fund had seen outflows as a result of poor performance. Cowley has stuck to a negative duration position in a year in which bonds rallied. But, despite Cowley's short on US treasuries, his fund was not as badly hit as may have been feared during the October flight to safety, which saw Treasury yields plunge 34 basis points in a day. The fund lost 0.21% at the height of the volatility between 13 and 17 October. Cowley has been helped by the fact he increased exposure to Europe in recent months. He said: "Th...