Apollo's McGrath scales back positions in EM plays

Apollo Multi-Asset co-founder Tom McGrath has been cutting risk assets from his portfolios in expectation of more pain to come in the stricken eurozone.

In his £68m Apollo Multi Asset Balanced fund he has 48% gross in equities and 14% in short futures, equivalent to net equity exposure of 34%, close to the lowest level in the fund’s range. “We have been taking some heat out of the portfolios and dampening volatility as we have moved to a risk-off phase. “Over the past six weeks we have been selling futures on the Euro Stoxx and FTSE 100,” he said. He has cut positions in high-beta plays the Fidelity EMEA fund and the Magna New Frontiers fund, as well as the FF&P FCM European Opportunities fund. Instead he has opened a new po...