We aim to be contrarian investors as we believe that unloved assets tend to outperform. This is because when most people dislike an asset, it tends to have sold-off too far and can easily rebound if that crowd of investors gets spooked and tries to buy in a rush.
Right now bunds and other European government bonds fit into that category, largely because of their low yields. Combined with our view that steep interest rate curves are attractive, the negative sentiment from other investors encourages us to own them alongside European equities for the same reason.
To find out more, watch our latest clip from Bloomberg TV.