River & Mercantile's Hugh Sergeant and Will Lough have been adding to domestic European positions in their World Recovery fund as they become more confident of a recovery, despite ‘hot money' leaving the region last year.
The pair said the launch of quantitative easing, the depreciation of the euro and falling oil prices should be supportive of the European recovery stocks they have chosen, even though there may be short-term falls. Sergeant (pictured) said: "There will be times that Mr Market will worry about whether the recovery is being delivered and will cause the share price of your recovery investment to wobble. You must not wobble with Mr. Market; let him worry about short-term macro issues while you get on with buying more stock at a bigger discount to your medium-term estimate of the company's wo...
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