UK - GMO is launching a major bid to double assets under management in the UK this year.
The firm currently manages £757m on behalf of UK-based schemes and investors.
Chairman Jeremy Grantham said the push was part of its bid to rebuild global assets under management, which were decimated during the boom in technology stocks in the 1990s.
Investors abandoned GMO after it predicted the technology bubble’s collapse in November 1999. Global assets under management fell from US$60bn (£37.7bn) to US$25bn (£17.5bn).
GMO has since been proven right and Grantham said the time had come for it to leave its “little boutique thinking” behind, and expand.
To that end, the firm has appointed former State Street Global Advisors’ Switzerland managing director Alex Orus as head of European business development.
Grantham added that it could take years for markets to recover fully from the technology bubble.
He said: “All bubbles have over corrected by 50%. The great bubbles take their time, and it could easily be another four, five, six or seven years before we recover. All it takes is one lousy afternoon.”
He added that he believes that equities – particularly US and multinational blue chip equities – remain overpriced, and that for them to achieve fair value, the S&P 500 would have to fall at least another 250 points
GMO specialises in active equity and bond management in developed and emerging markets.
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