Top-performing global manager moves into energy stocks

Hermes' Geir Lorde has said he is building his exposure to energy as valuations in the out-of-favour area are looking increasingly attractive.

Lorde (pictured), who manages Hermes' £190m global equity fund, said cyclical-specific metrics have now turned more favourable for the sector. The move follows two consecutive calendar years of top quartile performance in the Investment Association Global sector for the portfolio. He said: "We are finding value in energy even though we haven't favoured it [until now]. The P/E ratio is the wrong way to look at cyclicals; you have to focus on underlying asset values and that is why we think they are looking attractive at this point. Another factor in his investment case is a belief t...