This translation has been automatically generated and has not been verified for accuracy.Economic uncertainty has held back value stocks, but fund manager Heather McPherson of T. Rowe Price Group Inc sees plenty of opportunity to scoop up undervalued shares, including in the financial and utilities sectors.
Shares of AIG, along with other property and casualty insurance companies, are poised to rise as concerns related to climate change and litigation drive up pricing, McPherson said. She cited California wildfires and opioid lawsuits against pharmaceutical companies as among events boosting insurers’ pricing power.“We’re seeing the best pricing that we’ve seen in 15 years,” she said.
At a time when net deposits in the mutual funds industry have shifted strongly to passive index products with low fees, McPherson takes a traditional approach, looking for undervalued companies. “It feels a little bit different here,” she said. “In the mix of that, though, is a lot of regulatory and political uncertainty, which we’re trying to use as an opportunity to buy good companies.”