Ardevora founder Jeremy Lang has been shorting "in denial" UK companies reliant on emerging markets, while attempting to exploit the domestic recovery.
The manager is shorting businesses including healthcare multinational GlaxoSmithKline, Imperial Tobacco, and drinks company Diageo in his top-quartile UK Equity fund. Lang said: “We are shorting more businesses that are a bit weak on strategy. They have been relying on emerging markets to grow, and we think the management is in denial to how things are changing.” As well as shorting these stocks in his UK Equity fund, Lang has also been cutting down EM-focused names in his £226m UK Income fund. “The stocks we have been buying have all pretty much been facing the UK economy or the Euro...
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