A recession in Europe likely, says fund manager


A recession in Europe is more likely than not because of continuing stress in Eurozone economies, according to Ajay Gambhir, manager of RWC Europe Absolute Alpha Fund.

Gambhir (pictured), who runs the £190 million ($301 million) UCITS fund, adds that bank deleveraging may continue in the second half of 2012 and could resurface as a drag on markets.

He says: “I am unsure if improvement in the US will continue into the fourth quarter of 2012 or 2013 given the fiscal realities in the region – these will need to be confronted.

“However, in China we do