GLG Partners co-founder Pierre Lagrange explained that he prefers industrial and energy stocks as opposed to banks. He has now opened his European equities hedge fund to trade investors.
In an interview on On the Move, Lagrange explained that the fund will “focus on industrials, exporting companies and oil companies.” Bullish bets will be made on “all these things that are more dominated by what’s happening in the world and less by European sovereign” debt disaster.
European stocks have continued to fall, forcing Greece, Ireland and Portugal to request bailouts. Italy is concerned the crisis will spread. Since February 17th, the Stoxx Europe 600 Index has turned down 6.5%. GLG European hedge fund has nearly tripled over the course of the last ten years, while the Stoxx 600 have decreased by 14%.
In the interview, Lagrange said the fund will be managed by himself, Simon Savage and Darren Hodges.
“It’s really very, very difficult to analyze,” he said. “So we try to spend more time on other companies where it’s slightly more logical over the medium term. There may be extraordinary” possibilities with banks “but we find the risk-return is better in other sectors.”