Littlewood trims exposure to 'vulnerable' equities

Artemis' William Littlewood has reduced overall net equity exposure in his £700m Strategic Assets fund in the view rising shares are vulnerable to disappointment.

As companies continued to prosper and share prices were rising, Littlewood positioned the fund with a reasonable exposure to the market, with an average net exposure of nearly 80%. However, following this period of equity market strength, he has reduced the fund's gross long equity position from 86% to 84% and increased its short positions from 8% to 9%. This is a 3% reduction in net equity exposure, to 75%. He says if shares continue to rise from here, he will trim the fund's equity exposure further. "Why?" says Littlewood. "Because, from such levels, and given the uncertainty of ...