VaR Capital CIO shares his market views with Finance Magazine

VaR Capital Co-Founder and CIO Rajat Sharma shares his views on the markets with the editor of Portfolio Adviser magazine.

Faded optimism
CIO Rajat Sharma says: “We feel the equity markets are overvalued and there are imminent geopolitical risks that could lead to a correction. The five-year investment grade credit spreads are also at a historic low. Therefore, we are reducing our risks in both equities and bonds.”

Within its exposure to equities, Var has chosen more defensive stocks rather than cyclical with a higher exposure to telecoms and utilities. Within bonds Var has significantly reduced exposure to high-yield bonds from 14% to about 9% since the start of 2017. The team has also reduced the duration of its investment grade bonds from six to four years, and switched to bonds that have a better credit quality. Read the full article: Portfolio Adviser Article

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