Liu looks to contrarian bets in crisis markets

The Fidelity South East Asia fund manager warns share prices and currencies are pricing in a crisis scenario despite solid fundamentals.

Allan Liu, manager of the £2.4bn Fidelity South East Asia fund, is betting on tech stocks and “counterintuitive” companies as markets price in a crisis scenario. Liu said markets were trading at distressed levels but warned “it is not just a question of buying everything that stands to benefit” when sentiment picks up again. “Asian markets and currencies are now at crisis levels, without there actually being a crisis. The risk for the moment is in valuations; it has not touched the solid fundamentals of most Asian corporates,” Liu said. But the manager said a slowdown in the earnin...