Henderson's Adderson boosts cash and shorts European banks

Henderson Global Financials manager Emily Adderson has reintroduced a short position on European banks and boosted cash on expectations of near-term pressure for the sector.

Adderson has built up a 25% cash position in the £87m fund, which includes the 15% short on the European financials sector. The manager has also cut a number of stakes in UK and US banks, rotating into the insurance sector. “We first took out the short on European banks during the height of the sovereign debt problems but took the protection off when the risks became over-exaggerated,” Adderson said. “Following the European stress tests and the announcement of Basel III, the market has moved higher and it does seem a little stretched. The protection has served us well recently and ...