T.Bailey multi-manager switches focus to Western equity markets

T. Bailey multi-manager Elliot Farley is reducing his exposure to fixed interest and emerging markets in favour of developed market equities.

The manager of the £36m Dynamic Cautious Managed fund explained an appetite for yield and renewed focus on UK companies will be part of his strategy for the foreseeable future, while equities will make up the majority of the portfolio in 2011, at about 60%. Farley is making a tactical rotation into Western equity markets as “they are exposed to allocations in emerging markets but are more able to cope with the inflation spectre”. He says the fund is running less than half its usual exposure to EMs, at 6% of the portfolio. However, the manager also says one of the central positions of ...