JPMorgan Asset ManagementPhil Camporeale is a portfolio manager on the $4.2 billion JPMorgan Global Allocation fund, which has returned 14.2% this year and beaten 89% of category peers according toCamporeale is taking on six high-conviction bets in the fund to separate the portfolio from the oft-mentioned recovery trade on the street and breaks down how to select style, region, and size positions.
Camporeale is aware that his words evoke the oft-mentioned recovery trade on the street these days, but he has a plan for standing out from the crowd via style selection, region, and sizing of the allocation to each asset class. He added: "All those folks that have been able to keep their jobs and increase their savings rates, they are going to unleash bottled-up demand in sectors like leisure and hospitality, like restaurants that are going to benefit, along with that small-cap pro-cyclical view.", which is driven by his belief that global growth rebound will continue and the US dollar should remain contained.
"Cross-over credits straddle below investment grade and high yield," he said, adding that there's a good chance some companies in the latter category get upgraded to the former if his conviction about the recovery is right.Camporeale and his team, which treats currencies as an active asset allocation, also reduced long dollar bias by about 20% versus their long term average allocation.