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Cazenove diversifies with Occam fund

Cazenove’s multi-manager team has added the Occam global emerging markets fund to its diversity fund because it favours hedge fund managers that can quickly reduce risk in their portfolios.

The Occam fund is a long-biased emerging markets hedge fund that focuses on equities and related securities in regions such as Asia, Latin America, central Europe and the Middle East.

Hedge funds, along with corporate and high-yield bonds, have been used to take cyclical risk. Share prices of cyclical stocks tend to fall in value when the economy shows signs of a slowdown and rise when the economy is recovering.

Cazenove has a cautious view on the economic recovery, so credit markets, which have less downside risk, and hedge funds that can take risk off the table quickly, enable the firm to be defensive while maintaining diversity.

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