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Fly on the wall: how London & Capital is taking on the eurozone
by Annabelle Williams on Feb 21, 2013 at 09:55
That said, he feels exporters are starting to look expensive now, with stocks such as Cougar and ABB trading on price to earnings ratios of 16 to 20x.
‘So to enter into that game now means you can rely on them but if something happens to the euro your strategy could backfire.’
The team owns global clothing company Inditex, which Salas says is expensive.
‘It does perform very well but it is so expensive,’ he said.
Turning to hedge funds, which the London & Capital team allocate to within portfolios, senior hedge fund analyst Vijay Patel said managers were increasingly bullish on Europe.
‘They are not exactly net long, but they are seeing an increasingly rich opportunity set. Carlos says dispersion is bad, but it’s only bad for the long guys,’ he said.
‘For the long/short guys, dispersion is a Godsend.’
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