World Markets Not in ‘Crisis’ After Brexit Vote, Bachher Saysby
University of California CIO says he’s underweight U.K.
Manager Hirtle Callaghan says Europe is buying opportunity
The global market selloff triggered by the U.K. referendum to exit the European Union isn’t a crisis, said Jagdeep Bachher, chief investment officer at the University of California system.
“We were all worried about the global economy. This adds to that,” Bachher, who manages $91 billion of pension and endowment assets, said in an interview on Friday. But the markets aren’t “selling off to the extent you’d call it a crisis,” he said.
Bachher said his portfolio was “slightly underweight the U.K. going into the vote.”
Global markets buckled as Britain’s vote to leave the European Union drove the pound to the lowest in more than 30 years while sparking demand for haven assets from U.S. Treasuries to gold.
“We want to take advantage of the dislocations” but this is not “a panic situation,” he said, adding that the selloff isn’t at a level “where we’ve been jumping in.”
Jonathan Hirtle, chief executive officer of Hirtle Callaghan, which manages more than $24 billion for families, endowments, foundations and other institutions, said in an interview that Europe presents an investing opportunity.
“The best house in the neighborhood is stocks,” he said. “If the earnings in Europe get hit by this, that’s still a hell of lot cheaper” than the U.S. “We’re buying stocks on weakness. We had orders in last night to buy every 50 points down,” he said.