Kames' Roberts buys 'disaster insurance'

Kames Capital's David Roberts has added "disaster insurance" to the £510m Strategic Bond fund on doubts the markets will be able to function smoothly over the summer.

Roberts, (pictured), bought an emerging markets macro tail hedge in the form of CDS protection which adds to the fund's existing hedges on exposure to financials and government bonds. "We have taken out a little more credit insurance, reducing the overall risk in the fund. It is a disaster insurance against global growth falling over and the markets believing the eurozone situation will be dreadful. "The European debt crisis has not been resolved and there remains a lagging suspicion there are simply too many moving parts for the machine to function smoothly over the summer. We have l...