Time to Look for Bargains, This Outperforming Fund Manager Says

By Jan-Patrick Barnert (Bloomberg)

Rolf Kieckebusch trimmed his fund’s exposure to equities before the global sell-off started in early October. Now the German portfolio manager is looking to slowly move money back into stocks. The CEO of Kirix Vermoegensverwaltung, a Kassel, Germany-based asset management firm with 400 million euros ($455 million) in invested assets, favors value stocks offering depressed valuations following the market correction. After selling shares in Wirecard AG, Amazon.com Inc. and Google parent Alphabet Inc., he is now adding positions into McDonald’s Corp and Constellation Brands Inc., as well as in Danish health-care group Coloplast A/S and Norwegian-based fish farming plant Marine Harvest ASA.
“We had some good market timing when we saw momentum fading in U.S. equities and went into cash just before the recent decline,” Kieckebusch said by phone on Friday. His global equity fund Enrak Wachstum und Dividende is up 9.3 percent this year and beat 99 percent of its peers according to data compiled by Bloomberg. The fund boosted its cash position to 30 percent before the October sell-off, locking in some of the strong gains the fund had made during the summer.

After betting on some of the world’s biggest tech names earlier in the year, Kieckebusch now favors value over growth,
and U.S. over Europe as the market starts to consolidate following its steep drop. “We think the U.S. monetary tightening will not continue in the same pace next year as the Fed is well aware of the risks to the U.S. economy and troubles in emerging markets,” he said.

To contact the reporter on this story:
Jan-Patrick Barnert in Frankfurt at jbarnert3@bloomberg.net
To contact the editors responsible for this story:
Celeste Perri at cperri@bloomberg.net
Blaise Robinson, Monica Houston-Waesch