Biggest equity funds' bets for yearend: energy, banks and SIFs

Autor: Roxana Pricop 23.08.2010

Stock market corrections have pushed some of the biggest fund managers to take shelter betting on energy stocks, such as Transgaz Transelectrica and Petrom, for the coming period, while others, with a higher risk appetite, are keeping their exposure to the financial sector, expecting the economy to recover.
Banking and SIF stock have lost ground in the portfolio of the biggest equity fund with exposure to the Romanian market, ING Romanian Equity, to energy stock. The strategy shift is mainly accounted for by the trend of financial stock and risks associated to this sector. In the first months of the year, financial stocks performed well, but after corrections started in April, they have had a modest performance under the impact of the rising bad loan portfolio and bad economic news.
Adrian Tănase, investment manager with ING Investment Management, managing Romanian Equity fund, does not believe in the short-term growth potential of banking stock.
On the other hand, Radu Hanga, general manager of BT Asset Management managing BT Maxim, the biggest equity fund registered domestically, believes the economic rebound will be mainly felt in the financial sector.