Global hedge funds have been adding European stocks to their portfolios this year while trimming their exposure to North America amid an ongoing debate over how expensive U.S. equities are, Morgan Stanley’s proprietary data showed.
Europe’s STOXX 600 is up 6.5% this year, still lagging the S&P 500, which rose 9.6%. Last year, the S&P rallied 24%, posting the double of the STOXX performance.
The S&P 500 trades at 21 times forward earnings estimates, while European equities are trading at 14 times, BofA Securities showed.
Fidelity European Trust PLC (LON:FEV) aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.
