Investec's Stopford hedges 'vulnerable' US equities

Investec Asset Management's John Stopford has begun hedging US equity exposure in his Diversified Income fund, despite this part of the portfolio being the most significant contributor to performance last year.

Stopford (pictured), who is co-head of multi-asset at Investec and also runs a number of fixed income portfolios, has reduced the overall equity exposure of the £100m Diversified Income fund in the view downside risks are greater than the upside potential. He said: "Last year our equity allocation was helpful, with US equities the most significant contributor. Exposure to healthcare and technology sectors also helped, as did property and the US dollar. "However, I have taken the view that a combination of the strong US dollar and lower energy prices will impact earnings. With the Fede...