New Star's de Blonay stays defensive

de Blonay, manager of Global Financials fund, outlined how he has largely avoided UK, Irish and Spanish mortgage banks due to concerns that credit quality will deteriorate further. He prefers instead stocks with emerging market growth potential, such as Standard Chartered. "Financial stocks in the BRIC countries now trade on more compelling valuations because they ultimately suffered in the selloff alongside their western rivals," he said. Geographically, de Blonay believes prospects are improving in Japan. He outlined how the threat of deflation is over and wholesale prices are starti...