Castlestone Next 11 goes defensive in the face of equity anxieties in EMs

Castlestone's Arrash Zafari has added defensive positions to the recently launched Next 11 fund as investors become more concerned about equities over-heating in emerging markets.

The manager said defensive plays can be found even in markets that have rallied significantly and does not recommend investors reduce exposure to EMs, as stock selection is key. “We are more conservative due to the governments’ decision to tighten monetary policy and have become increasingly more defensive and cautious, not from a top-down but from a bottom-up perspective. “For the 18 months following September 2008, it did not really matter what you bought as it all went up, more or less. “Now, we need to find the companies that can go up in down markets.” He added the stocks t...