2013 has been good to equity investors so far but Tideway Investment Partners thinks there are better opportunities in the fixed income and currency markets.
The company has an absolute return fund that last year made a total return of 24 per cent from the bond markets. James Baxter, managing partner of Tideway, says: "We believe you can invest in fixed income with a more certain outcome than the equity markets. For example, we know that gilts are expensive - if you hold them to maturity you only get 3 per cent.
"A lot of the equity markets rise in the last few months will be depreciated by sterling.