Edelsten runs the £500m mid Wynd investment trust and the £322m Artemis Global Select fund.
Many asset allocators have viewed Eurozone equities favourably as global economies recover from the pandemic; many companies listed on those markets are businesses in sectors such as industrials, and mining which tend to perform well when economic activity is expanding.
But Edelsten is more sceptical, particular when comparing Eurozone shares to the opportunities he sees in the US.
He said: “I think that European equities will perform as long as the economies continue to recover. Vaccination levels are now satisfactory but this has come too late to make the summer season strong and so unemployment, especially amongst the young, is likely to stay high for another year and this a period where social support policies are being withdrawn.
“Also the Northern economies, especially Germany, may see a drag from the slowing Chinese economy. For these reasons we continue to favour US prospects over European despite the lower valuations in some European equities.”
david.thorpe@ft.com
