OPM Fund Management chief investment officer Tony Yousefian has doubled his exposure to US assets in the £10m OPM worldwide opportunities fund from 17 per cent to 34 per cent.
Yousefian reduced his underweight position to US assets by adding to US high yield and US equity because more positive data has been coming out of the region.
Yousefian says: “Last quarter’s purchasing managers’ index was better than the market was expecting and companies are coming out with results better than market expectation.”
He says he is not concerned in the short term about the US debt problem as policymakers have shown willingness to support the economy through quantitative easing.
Yousefian says: “We are beginning to see the positive effects of pumping liquidity into the economy in the positive data that is coming out of the US.
“I am not worried about US debt in the short term but in the long-term it will come back to haunt policymakers as a major issue that needs to be addressed.”
Longview Economics economist Harry Colvin says: “Investors should not be investing in the US on a five-year or 10-year view.
Quantitative easing causes inflation and debases the currency, so you do not want to be holding dollar-denominated assets.”