The firm believes investment markets are 12-18 months ahead of the negative news about the economic outlook, corporate earnings and unemployment.
Fund manager Tony Yousefian says it would be easy to miss the turning point while the headline news is so gloomy but a core element of long-only funds comprises 75 per cent of OPM’s portfolios and should be poised to catch the upswing in markets.
OPM uses the satellite element for more active tactical plays. It is buying FTSE and S&P 500 exchange traded funds when markets become oversold at the end of the downswing. It will then switch into short or reverse ETFs, which benefit from market falls, when markets peak at the end of an upswing.
OPM balanced managed, OPM equity high income and OPM UK equity were all ranked first quartile in their respective IMA sectors between October 28, 2008 and March 1, 2009.