Jean-Claude Felguera, manager of Algar Global Fund
Algar Global Fund is one of the best mutual funds of the European Stock Exchange, after achieving an average annual return of 14% in the last five years. Its chief executive, Jean-Claude Felguera, acknowledges that this exercise is very difficult to manage. This investor differentiates between political background noise "such as the tariff war initiated by Donald Trump or the rise of populist parties," with specific political noises "as in the case of Italy, which we believe will end up remitting or the 'Bréxit'.
In case of background noise, "the market is more vulnerable in its fundamentals, and we reduce exposure, due to lower growth and lower expected multiples. In specific cases, it is used to increase exposure or in case of concern, to reduce exposure to the affected market ".
One of the formulas to manage these uncertainties is to reduce exposure to companies that operate in highly regulated markets. "We avoid sectors that are very dependent on the regulation of governments, because they are more affected by political noise".