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Cazenove’s Russell avoids Govt-tampered financial stocks

Cazenove UK absolute target fund manager Tim Russell says it was worth paying a little bit more for financial stocks which have evaded Government intervention.

Speaking at a Cazenove Capital annual conference today, Russell told delegates that ongoing interference from the Government is creating an increasing challenge for fund manager stock selection.

He said : “With Barclays it was worth paying a little bit more for a stock which escaped the clutch of the British Government than ones that haven’t.”

The Cazenove UK absolute target fund launched in July 2008 and is a daily-dealing sub-fund of Cazenove’s absolute return fund company, an open-ended investment company.

Seen as a direct rival to Mark Lyttleton’s BlackRock absolute alpha fund, Russell’s fund seeks to achieve positive returns independent of UK stock market price movements and economic conditions.

Russell expressed caution over exposure to the banking sector, saying it was vulnerable to sharp volatility. He said: “Stocks could double or halve quite comfortably from the levels they are at the moment.”

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