Mansartis US equities manager’s take on US election
Hilary Clinton and Donald Trump have had their second debate in the campaign of the US presidential election on 9 October.
InvestmentEurope has asked her view to Julie Jourdan (pictured), the portfolio manager of the US equity fund Mansartis Amérique at French boutique Mansartis, on the US election and its further eventual impact on the US equity market.
Jourdan highlights that historically elections in the US have a small impact on financial markets.
“Could this time be different? Maybe if Trump gets elected. But the election is not only about the President but also about Congress and Senate. And probabilities are in favor of a balanced situation between Republicans and Democrats that will limit the possibilities of strong and structural changes in the economic policy.
“Therefore, if Trumps gets elected, we might have an initial emotional reaction, but financial markets should recover quickly,” Jourdan says.
The portfolio manager of Mansartis Amérique assesses that if Clinton leads the polls and “states’ mathematics”, the number of Trump’s voters across the country may be underestimated.
Jourdan points out a Trump’s win would lead to some turmoil in the US equity market as it would create some uncertainties around the current policy especially on the international side.
“But one should not forget that the final composition of Congress and Senate are crucial to implement any major decision. On the internal economic policy, Trump’s proposal are focused (as for Clinton’s) on an fiscal stimulus that could include tax decrease, a special 10% rapatriation tax, … which could be beneficial to companies earnings.
“Therefore, on the markets prospects, a Trump’s win could create some volatility in the short run but that might not last,” she adds.
Regarding stocks picked in Mansartis Amérique, Jourdan explains that the firm has a strong bias towards innovation and growth. Technology, consumer’s oriented companies and healthcare form some of the sectors the manager is invested in.
“Amongst our favorite stocks, we favour visible business that have pricing power and strong barriers to entry such as Alphabet, Comcast, Microsoft, Visa for example,” Mansartis’ US equities manager says.
Established in 1982, Mansartis, which provides family office, M&A and asset management services, has around €600m of assets under management.