Shares digital

by Simon Keane

New recruit to broker Numis, Gujit Kambo, has made his mark by initiating coverage on nine asset managers. Kambo, who joined the broker six months ago from HSBC, says investors should give the sector a second look after a torrid few months. ‘There are opportunities out there. To write-off the whole sector is not the right thing to do,’ he says, while going against the tide by slapping a buy on long-only UK equity specialist Liontrust Asset Management.

Kambo spent two-and-a-half years at HSBC covering the asset managers, hedge funds and the investment banks. Before that the analyst worked at Credit Suisse, where he followed the banking sector.

The buy on Liontrust is perhaps the most interesting of Kambo’s decisions. Its heavy UK equity exposure has seen the group marked down more than most over the past six months but Kambo sees the downward rerating as overdone. He says improving performance from the group’s key equity income fund Liontrust First Income means the stock is worth a second look – has Kambo spotted a return to form by First Income’s respected manager Jeremy Lang?

Kambo has also initiated coverage on BlueBay Asset Management, Ashmore Group, Man Group, F&C Asset Management, Schroders, New Star Asset Management, Charlemagne Capital and Henderson Group. Like most of his peers the analyst is more upbeat on the alternative asset managers, placing either buys or adds on the emerging market specialists and hedge fund groups.

BlueBay is Kambo’s top pick in the emerging markets space, but peers Ashmore and Charlemagne are rated adds. The analyst maintains Numis’s buy rating on RAB Capital (already covered prior to Kambo’s arrival) but is also positive on rival hedge fund manager Man Group with an add.

With the exception of Liontrust and Aberdeen Asset Management (he maintains Numis’s existing buy rating on the latter) Kambo is unconvinced by the other long-only managers. F&C and Schroders are rated sells while New Star and Henderson are placed on hold.