The $73 billion Paris-based fund Carmignac Gestion’s head of fixed income, Rose Ouahba, said her team is trading the Euro crisis by avoiding the currency altogether.”We don’t feel comfortable having any positions in the European bond market,” she told Bloomberg in an interview.
“We used to own some French bonds, we used to own a little bit of Greece.”
“We decided to shift all the holdings to German bonds only [in March]. We won’t revisit our view for six months, until we have seen how the growth outlook evolves in the second half of the year. There are a lot of question marks.”
“The sovereign debt crisis will be an issue for the long term. We find it very difficult, as long-term investors, to make a bullish case, because the risks are high.”
As for what they do own, the 25-billion euro Carmignac Patrimoine fund has 3% of its assets invested in developed-nation government bonds, ~1.5% is invested in German bunds, and 1.5% in U.S. Treasuries, Ouahba told Bloomberg.
She also said 54% of Carmignac’s assets were in equities as of April, with the remainder in corporate and government bonds.