Mundy says blue chips are top hedge against 'unknowns'

Alastair Mundy, manager of the Investec Cautious Managed fund, believes lowly valued blue-chip equities are possibly the best hedge against any future economic or market uncertainty.

Mundy's £1.66bn portfolio has a 42.8% exposure to UK equities - with large positions in mega-caps such as HSBC, GlaxoSmithKline and Royal Dutch Shell. The manager has recently been trimming his exposure to gold miners following strong rise in a number of these positions, but has been adding to his other 'insurance policy' against macro headwinds, Norwegian kroner bonds. Mundy says blue-chip UK equities also appear to be a good hedge against future "unknowns". "I still have my gold shares, as well as Norwegian kroner, which I have added a little recently," Mundy says. "If we do e...