Threadneedle Investments launches US contrarian core equities fund in Sweden
Threadneedle Investments is to launch its Threadneedle (Lux) US contrarian core equities fund in Sweden, following approval by the Swedish regulator.
The fund is managed with the same approach as the $2.0bn Columbia management contrarian core fund which seeks out of favour income and growth stocks by Guy W Pope, managing director and senior portfolio manager at Columbia Management, fellow asset management subsidiary of Ameriprise Financial.
Pope, along with his associate portfolio manager Harvey Liu, uses proprietary screening methods to find large cap US stocks which are in the bottom third of their 52-week price range.
This leads to stocks being identified where it is felt that the price undervalues the company. The portfolio is constructed to seek above average returns whilst balancing risk and rewards.
“This fund is all about pessimism. We are looking for those companies that have fallen out of favour due to undue pessimism about their future. By taking a bottom-up approach to finding these stocks we can identify those unfavoured companies with the best upside potential in order to generate alpha for clients. In the current market, many stocks are trading within the bottom third of their 52-week price range and so I currently have a very large universe in which to invest and we are uncovering some very good opportunities,” Pope said.