RWC's Lance on the dangers of playing the momentum game

The dangers of playing the momentum game

RWC's Ian Lance and Nick Purves run three equity income portfolios at the fund house: the UK-focused Enhanced Income and Income Opportunities funds, and the recently-launched Global Enhanced Dividend fund.

Including segregated mandates, they now manage £2.5bn at the group they joined from Schroders in 2010. In recent months, the pair have stuck by their bearish stance even as markets continue to rise, and have taken cash levels to more than 20% of their portfolios. Here Lance discusses this move, the implications of the recent sell-off in momentum stocks, and why share buybacks may eventually prove problematic for investors. You are holding 20%-25% of your portfolios in cash. How long do you expect maintaining these positions in the absence of a major sell-off? The issue is not ti...