UK economy a matter of contrary interpretation for hedge managers

UK LONG/SHORT

Managers in the UK long/short sector are split on what message the economic health of the UK is giving, and how they should construct their portfolio as a result.

Hubert van den Bergh, portfolio manager at Park Town Asset Management, says the UK equities market is over-valued, with a 60% correlation to the S&P, which is trading at a premium to the long-running average.

With fundamentals strong, interest rates rising, low dividend yields and personal debt and bankruptcies high, he says the mark