M&G's Aled Smith, manager of the Global Leaders fund, believes short-term equity market flutters can...
M&G’s Aled Smith, manager of the Global Leaders fund, believes short-term equity market flutters can present buying opportunities for brave investors.
Well-managed companies, chosen carefully during times of market volatility, can provide good returns with disproportionate risk, he said.
“Recent volatility has left some financial businesses looking undervalued,” he added.
“This presents a good opportunity to buy in to quality companies at attractive prices. I look for those that are implementing positive internal change such as restructuring, cost-cutting or hiring new management.
“For example, I have purchased Dexia, a Belgian bank with a new CEO who is invigorating the company's culture and restructuring the retail banking division. I have also bought into Genworth, a US insurance company that is redeploying capital into higher-returning areas such as its international division.”