Informed Portfolio Management’s Björn Österberg positive to equities

Indicators used by Informed Portfolio Management (IPM), the Swedish systematic investor that has some $6.5bn under management in macro and equity strategies, suggest investors should be long equities.

Björn Österberg head of research and a member of IPM’s investment committee, has told Affarsvärlden that he is also positive on UK bonds, negative on Canadian bonds, and positive on SEK.

Equities are bieng priced low compared to the prevailing level of interest rates, which is the result of risk premiums on equities becoming too high following the financial crisis, he told the Swedish business magazine. One example is the financial sector, where investors have fled bank shares for several years. But given that much of the bad news is already discounted, then it has become interesting for IMP’s model. On the other hand, a company such as Apple is doing very well, but the model would query how much more good news can be built into the share price.

The indicators also point to the telecoms sector as being interesting. Overall PMI’s macro strategy relies on some 40 indicators, and its equity strategy on some 10 indicators, Österberg said.

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