'Screaming bargains' will not be winners in Europe

FUND MANAGER FOCUS

Threadneedle's top performing European manager David Dudding said the best way to play beaten-up European markets is to adopt a buy-and-hold strategy in the strongest franchises the continent offers.

According to Dudding (pictured), investors should not be looking to capture ‘screaming bargains’ in an increasingly volatile market environment. Instead they should maintain a long-term focus to profit from companies which will emerge from the eurozone crisis with stronger business models, he said. On a three-year view, Dudding’s £950m Threadneedle European Select fund has returned 42.3%, beating the IMA Europe ex UK sector average 11.3% and placing it in the top decile, according to Morningstar. Here Dudding explains his favoured sectors in the European market, why he is underweig...