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A broad, bottom-up stock portfolio gives you downside protection, says David Hogarty

David Hogarty, head of global equity strategy development at Kleinwort Benson Investors, explains in this video interview why he doesn’t believe in macro views and why he thinks it’s better for a fund to be invested in a broad portfolio of stocks.


Dylan Emery

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  • Basing your investment decisions on macroeconomic factors is notoriously unreliable, believes David Hogarty. He thinks investors are better off using their risk budget to apply stock selection while refraining from making any macro calls.
  • Dividend-yielding companies are an important part of Hogarty’s portfolio. He considers dividends an important indicator of a company’s health. However, instead of focusing on the absolute level of yield, he looks for companies that offer competitive dividend yields compared to their peers. 

  • Hogarty’s team has 160 stocks in their global portfolio. While this may look like a lot, he thinks this gives you better downside protection than a concentrated portfolio. “Our exposure on the downside is really where we make our money,” he says. “We make most of our relative performance against the marketplace in months when the market goes down.”