Sterling is cheapest major currency: Investec AM

Investec Asset Management, which runs over $4bn in active currency funds, believes sterling is the cheapest of all major global currencies.

Tim O'Dell, who manages Investec's Managed Currency and Currency Alpha funds, says the group is overweight sterling and believes it would take a 5-10% devaluation of the dollar against the pound to change the view. In 2010, sterling has fallen 11.2% against the dollar and 13.9% against the yen. The pound is lightly higher against the euro this year, up 0.4%. Investec's contrarian stance comes as speculators increased bets against sterling to record levels. "We maintain our view that sterling is the cheapest of the major currencies," O'Dell says. "Regarding the political situatio...