MAM's Callow boosts risk with overseas equity funds

MAM Funds' Simon Callow has been adding risk back into his CF Midas Balanced Growth fund during the second quarter by increasing his positions in international equity funds.

Callow (pictured) and co-manager Mark Wright had been de-risking the £200m fund moving into Q2, in a bid to dampen volatility. But after a sharp fall in risk assets when the eurozone debt crisis intensified, they decided to tolerate some short-term risk to take advantage of the upside in these assets. “At the start of the quarter the fund was reasonably defensively positioned. However, markets subsequently suffered large losses, leaving significant risk premium on offer,” Callow said. He moved to take advantage of this by removing hedges and opening some new positions in risk asset...