Coombs: Volatility brings unique opportunities in 'unloved' assets

Volatile market conditions have presented a unique opportunity to gain exposure to assets previously considered "toxic", according to David Coombs, head of multi-asset management investments at Rathbones.

Despite their negative reputation, some multi-asset managers are now looking again at funds with exposure to these kind of assets, although many continue to shun the products after being burnt in the past. “The psychological scar from 2008 means that ‘leverage’ is still a dirty word,” said Coombs. “But investors could be losing out by focusing on historic risk when looking at the likes of mortgage-backed securities, hedge funds, and private equity. “When these kinds of investments are as unloved as they are, it is usually the right time to go in, especially with the cost of capital s...