Feb 14, 2011 at 13:34
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Speaking to Citywire at his Paris base, the French fund manager said the long term outlook for the natural resources sector is positive especially considering the cheap valuations.
‘Profits from natural resources went up considerably last year but the sector’s performance was nothing extraordinary, not in line with the profit’s evolution,' said Lemonnier, who runs the
Amundi Actions Emergents fund. 'This meant there was a significant valuation gap so we increased our exposure to the sector and to Russia.
‘It was to play the sector at very cheap prices as there was an enormous PE discount with Russia and it was a country that few investors were exposed to.’
Lemonnier is not alone in his bullishness on Russia; Schroders' global emerging markets head Allan Conway also told Citywire
last week of his recent move to overweight the country, which has often scared off investors due to its volatility and strong correlation with the oil price.
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Star EM manager Lemonnier joins Russia bulls - Citywire