Volatility leads Collings to cut holdings in his GEM offerings

Bryan Collings has cut the number of holdings in his Hexam Global Emerging Markets fund on expectations of a further 10% slide for developing world equities.

Collings has reduced the number of stocks from about 50 to 41 and cut exposure to recent top-performers in the materials sector, rotating into positions in Taiwan, China and Russia. After the recent 7% sell-off for broader emerging markets, Collings can envisage a further 10% fall, dragging markets back to February valuations. “We remain cautious in the short term as the liquidity-driven rally has fuelled valuations and a very strong recovery is priced in. Any disappointment in earnings or a liquidity pullback can result in a rapid market correction,” Collings says. “Unfortunately mar...