Thesis cuts back UK exposure in anticipation of 'referendum hangover'

Lack of confidence in the asset class

Laura Dew
clock • 1 min read

Thesis has further reduced its UK equity exposure in six of its seven model portfolios on fears post-Brexit market uncertainty will continue for some time.

UK equities have risen significantly since the EU referendum thanks to large-cap companies, which have overseas earnings. However, mid-cap companies and areas such as housebuilders have not fared as well due to their domestic exposure.  Thesis has reduced exposure to the UK by selling retail stocks and cutting down its allocation to financial stocks due to the lower yield environment in that sector. UK equity exposure in the two lower-risk portfolios has been cut by 2%-3%, while the four higher-risk portfolios have been cut by around 5%.  The firm previously cut exposure to both UK...

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