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The UK hasn't been a significant option becuase LSE dealflow is dead, and China difficult because of capital controls, and much of the capital flow within China
by alephnerd 10mo ago
The UK hasn't been a significant option becuase LSE dealflow is dead, and China difficult because of capital controls, and much of the capital flow within China is dry powder from those investors who couldn't exit.
As such, we have nowhere else to park other than the US, though there is an opportunity for opportunistic hedging.
- toomuchtodo 10mo agoThat might be your opinion, but the evidence is clear asset managers are rotating away from US centric investing via capital reallocation.
- alephnerd 10mo agoThose same asset managers are my LPs and peers. It's hard enough making a broad ExChina strategy. Making an ExAmerica strategy is even harder given how lopsided the global equities market is. Furthermore, the articles you yourself provided are either marketing collateral for emerging markets stock (JPM) or opinion pieces by asset managers trying to vouch for their case.
- toomuchtodo 10mo agoI welcome any citations you're able to provide, I also have a Bloomberg terminal if you have a reference not public.
- smeeagain2 10mo ago[dead]
- alephnerd 10mo agoI'd say this article [0] is probably a good enough overview of my thinking - there essentially is a rebalancing, but largely within American markets, with funds flowing into either Money Markets or sector speicifc funds. [0] - https://www.reuters.com/business/us-equity-funds-see-weekly-outflows-geopolitical-rate-worries-2026-01-09/ https://www.reuters.com/business/us-equity-funds-see-weekly-...
- saubeidl 10mo agoEurope says hi.
- alephnerd 10mo agoEuronext, Deutsche Borse, and NASDAQ Nordic have a combined market cap a little under $10T and a little under $400B in monthly trade volume - it's too small to support an ExChina let alone an ExAmerica strategy. Heck, Euronext and DB's monthly trade volume makes the LSE look attractive. There are opportunities that are relatively undervalued (eg. European defense majors), but there just aren't enough to make up for the entire US's public equity market. And don't get me started on exit opportunities for privately held assets (eg. PE/VC).
- PeterStuer 10mo agoAfter the attempt to seize the Russian assets, parked capital is fleeing the eurozone.