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Why Midas' Reeks is excited about India and Thailand
Markets
by Annabelle Williams on Jan 29, 2013 at 09:57
A holding in BG Group was a dampener on performance, as the stock has fallen around 27%, but Reeks maintains the company was unfairly penalised after announcing a flat production forecast. ‘Ultimately we think it’s about the assets as opposed to the production figures, which was the reason for the initial drop.’
Outlook
The portfolio has around 20% exposure to emerging markets and Reeks is especially positive on the outlook for Thailand this year.
He is looking at taking a position in Aberdeen New Thai and while he considers it too expensive at the moment, he is hoping Thailand’s complicated politics will provide attractive trading opportunities.
‘We think the country will probably go from strength to strength. The Aberdeen one would be quite a good investment trust to trade because the good thing about Thailand is there’s quite a big political divide – so there are bumps in the road and plenty of good entry points.’
Reeks is bullish on the outlook for India, although he does have reservations about the country’s corporate governance culture.
He has a holding in the JP Morgan Indian trust and expects to add to this if there are signs of commitment to a culture change.
‘We still believe in the Indian growth story,’ Reeks said.
‘All of the hallmarks are there for what should be a good place to invest but [India] needs to sort out the corporate governance issues.’
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