AXA IM's Hargraves cuts a third of European fund holdings

Higher conviction approach

Mark Hargraves, manager of the AXA Framlington European fund, is taking a higher conviction approach by cutting the vehicle's total positions from 60 to nearer 40.

Hargraves (pictured), who also runs the £58m AXA Framlington Global Opportunities fund, said concentrated portfolios usually outperform over a five-year timeframe, despite a potential increase in short-term volatility. "Over the past decade, a number of funds I have managed have been more concentrated than the European fund, and they tend to outperform over time," he said. "The reality is when your portfolio is more concentrated it focuses your mind on each stock that goes in and, as a result, you do tend to focus on higher conviction ideas. "The risk with a 60-70 stock portfolio i...