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CORRECTED-BUZZ-VIEW FROM THE BUYSIDE-Washington uncertainty bolsters case for domestic European stocks - Manning & Napier
May 18, 2017 / 11:44 AM / 4 months ago

CORRECTED-BUZZ-VIEW FROM THE BUYSIDE-Washington uncertainty bolsters case for domestic European stocks - Manning & Napier

(fixes portfolio manager name)

LONDON, May 18 (Reuters) - ** “Deteriorating” political environment in Washington combined with increasing tightening in China imply “external demand for Europe might be getting as good as it gets”, Jeff Donlon, managing director of global strategies at Manning & Napier, says

** Donlon honing in on stocks driven by domestic European factors as a result

** France and Germany are PM’s preferred European markets due to strong fundamentals and risk premiums coming down after French election

** Macron victory in France led Donlon to focus on companies that could benefit from labour and tax reform, with big French labour force and high tax contribution

** Sees Orpea, Sopra Steria, Vinci, St Gobain, Alten, Altran as benefiting, increasing holdings in these since March

** Been “warming up to” European banks, particularly French and German banks

** UK strategy is opposite of EU strategy: avoiding domestic-facing UK stocks due to increasing pressures on consumer spending, instead preferring stocks with external sales and exposure outside the EU

** UK holdings include Croda, Ashtead, Reckitt Benckiser

** Hunting for opportunities in consumer discretionary and IT stocks in Europe

** Holds tech companies he thinks will benefit from rising geopolitical tensions, cyberattacks such as the recent ransomware attack. Network security firm Sophos and defense and security company Qinetiq among holdings

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