A few weeks back you may remember that I talked about the Stratton Street ECG Wealthy Nations bond fund which I believed warranted further attention. This invested in a wide range of sovereign and corporate debt issued by countries regarded as ’wealthy’ under Stratton Street’s screening methodology - and those countries included Middle Eastern hot shots such as Qatar, Abu Dhabi, UAE and of course, Dubai.
Now you won’t need me to remind you of the events of the last few days, but you might be interested in the views of the fund managers from Thursday evening.
I think the crucial paragraph is the last one. Increasingly I’m tending to bold contrarian positions especially when a flight from risk ends up devaluing assets in related peer groups not suffering quite the same structural problems. Dubai may or may not be in deep, deep trouble but the sudden collapse in prices for say Qatar debt I think may present a compelling opportunity. Read on.
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