GMO slashes equity exposure amid 'out of step' market movements

Better performance from emerging markets

GMO has cut equity exposure across its multi-asset portfolios in response to what the management team sees as overly optimistic pricing in developed markets, which do not offer enough reward for the risk required at present.

After initially adding to risk assets when the coronavirus pandemic began to affect markets in March, Tommy Garvey, member of the asset allocation team at GMO, said the "huge recovery" in markets has led...