Geffen backs US economy with record weighting

Robin Geffen has increased the American weighting in his Neptune Global Equity fund to its highest ever level, based on his confidence in the economy.

At the end of January the £1 billion fund had some 35% of its portfolio invested in America, which Geffen describes as the “standout amongst the developed economies”.

“It has the highest estimated GDP growth, a supportive Federal Reserve and a willing and active government which is ready and able to intervene when necessary,” the Neptune founder says. “Economic data has been improving over the last three to four months, in stark contrast to other areas such as Europe, and the feared double dip looks sure to be avoided.

“The US is consistently boosted by breakthrough innovation that we are currently witnessing via Apple in the tech sector and also in the energy space via new technologies harnessing gas and oil from shale.”

In September 2008 the fund’s American weighting fell to as low 4.6%, but by the end of last year it had risen to over 27%.

Given his bullish stance on improving global macroeconomic conditions, Geffen has positioned the portfolio to be more aggressive than defensive.

For instance, his highest sector weightings are industrials and energy, while the fund is underweight in healthcare, the classic defensive sector.

He says: “We increased the industrials sector weighting through the inclusion of several large US industrial companies, such as Caterpillar, in 2011.

“In addition, we increased the energy sector weighting late last year to play the oilfield services theme. In both cases they are examples of sectors that have a US base, but truly global footprint.”