Few money managers would be willing to describe today's
global equity markets as cheap or offering great long-term value
(they certainly offer less than 18 months ago). Similarly, the
voices supporting bonds as a long-term investment thesis have grown
steadily quieter, especially as the US Fed stands in the corner
ready to unleash further tapering.
Risk-taking investors are faced with a very basic conundrum
– own equities because there is nothing else you would rather
own (and the usual alternative to owning equities - i.e. bonds - is
about as attractive as you with a kebab in your hand at 3am) or
become more risk averse and hold cash.
The first possible solution to this conundrum is to entrust your
money to people who are still able to find the diamonds in the
rough, but remain exposed to the same asset classes. Short-term
performance for such managers can often diverge significantly from
market benchmarks and remaining invested requires patience and a
strong
