Jupiter's Clunie: Why I am shorting quality stocks in my Absolute Return fund

Unusual investor behaviour

Anna Fedorova
clock • 2 min read

Jupiter's James Clunie said investors are "making a mistake overpaying for quality stocks", which currently make up a net short position in his £478m Absolute Return fund against long exposure to value investments.

Clunie (pictured) said the "unusual behaviour" of investors favouring bond proxies is creating an opportunity for arbitrage for an absolute return investor, though he admitted it feels uncomfortable to go against the consensus. "It feels horrible, but we think long-term we are right," the manager said. "We are embracing the uncertainty, but this means we have to bear the pain. We think people are making a mistake overpaying for quality, so we are slightly net short." FCA probes absolute return funds as part of competition study For example, the manager is shorting quality stock Rém...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Funds

IBOSS AM brings core and passive strategies into Blended MPS range

IBOSS AM brings core and passive strategies into Blended MPS range

Cost-efficient active management

Sorin Dojan
clock 23 July 2025 • 1 min read
Evelyn Partners cuts US equity exposure for sustainable MPS range

Evelyn Partners cuts US equity exposure for sustainable MPS range

In favour of global equities

Sorin Dojan
clock 17 July 2025 • 1 min read
EMEA equity fund inflows hit two-year high as Iran-Israel ceasefire holds

EMEA equity fund inflows hit two-year high as Iran-Israel ceasefire holds

UK outflows continue

Linus Uhlig
clock 14 July 2025 • 2 min read
Trustpilot