Geffen takes big US call

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

Robin Geffen
Robin Geffen

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

The Neptune founder says: “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.

“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.”

Back in September 2008 the US weighting fell to as low 4.6%, but by the end of last year it had risen to over 27%. (article continues below)

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.”