Kames' Milburn expecting short-term seasonal sell-off

'Sell in May and come back on St. Leger’s Day'

Phil Milburn, co-manager of the High Yield Bond fund at Kames Capital, has increased his cash holdings in the expectation the bond market will be impacted by a seasonal sell-off.

The old adage of "sell in May and come back on St. Leger's Day", Milburn said, is particularly prominent this year as valuations have become elevated across parts of the fixed-income market. The co-manager of the £1bn fund said there will be better opportunities to invest at a later date, which is why he is holding 11.7% cash in the portfolio. He said: "The fund's cash position looks optically high after some sales in March but we will only deploy this when suitable opportunities arise. Kames' Milburn reveals high yield 'sweet spots' as US elections near "Seasonally, May tends t...