Man GLG's Powe sticks to guns on luxury goods amid 'scarred' outlook for Europe

'Not optimistic' on prospects for European economy

The coronavirus pandemic will "leave scars" on the European economy, which is unlikely to return to significant growth once the health and economic crisis subsides, according to manager of the £1.9bn AUM Man GLG - Continental European Growth fund Rory Powe, who has been adding to some of the fund's biggest positions in the continent’s largest brands in a greater focus on quality.

Speaking to Investment Week, Powe said that while economic activity should improve by the second half of 2020 and into 2021, he is "not optimistic" about the continent's prospects, with coronavirus-related issued compounded by structural issues such as an aging population and rising debt. Brexit Blog: Government U-turns on border checks policy - reports He added: "This recession, sadly, will leave scars and it will be difficult for the European economy to shake off the impact of this." Powe estimates that 50% of the portfolio is vulnerable to the impact of the coronavirus to the ex...