Insight's Howarth to up gross exposure as volatility falls

Richard Howarth is poised to increase the gross exposure of the Absolute Insight UK Equity Market Neutral fund following a drop in volatility across markets.

Howarth says the £492m fund would be increasing its gross exposure to between 75% and 100%, from a 60% to 80% range at the beginning of 2011 as fundamentals return to the forefront of investors’ minds and correlations between stocks fall back. “Normally the correlation between stocks is about 40%-50%, but in the fourth quarter it surged to 80%,” Howarth says. “Now, with volatility at lower levels and correlations falling significantly, we are more willing to run larger positions within the fund.” Stocks the team has  been favouring include Hargreaves Lansdown, which recently enter...