Polar Capital adds to banks and miners during market volatility

The managers of Polar Capital's UK Absolute Return fund have used the turbulence of the past fortnight to increase net market exposure to its highest level this year, adding to positions in favoured banks and miners.

Philip Hardy and Nick Shenton say: “During the course of the week of 3 May we used the pull back to reinforce the positive view we have had since the beginning of the year by targeting specific core longs where we feel the risk-reward is compelling.” On 3 May, the £125m fund’s net exposure was 26%, with gross exposure of 129%. These were 39% and 130% respectively by 10 May, when markets absorbed the enormity of the e750bn (£641bn) EU bailout packages. Hardy says: “Net exposure at 39% is as high as it has been all year. Over the week, we probably added 10 percentage points to our net e...