TR's Geikie-Cobb mulls shift back into US dollar exposure

Thames River's Peter Geikie-Cobb is looking to rebuild the US dollar exposure of his Global Bond fund to 75% over the coming month, having trimmed it to 50% in May.

The earlier 75% position, which included options, reflected how positively Geikie-Cobb and co-manager Paul Thursby viewed America’s currency and economy. However, they scaled back their dollar exposure last month as the greenback rose 4.7% against sterling and 6.8% against the euro. Geikie-Cobb says: “Between now and the June Budget, if the dollar gets close to $1.50 to the pound we would move back to 75%.” Half of Global Bond’s 10% return this year came from currency exposures, and half from duration. Geikie-Cobb says the longer-term aim is to get 40% from FX and 60% from bonds. ...