Hedge funds are increasing exposure to companies likely to benefit from a potential Ukraine peace deal, as optimism builds around US President Donald Trump’s efforts to broker an agreement with Vladimir Putin, according to a report by the Daily Telegraph, citing data from Morgan Stanley.
Stocks grouped in the bank’s “Rebuild Ukraine” basket – including cement, energy and security firms – were the most purchased by hedge funds globally last week. The basket features names such as Vinci, Heidelberg Materials, Assa Abloy, Holcim, CRH and Buzzi, which are expected to see significant upside from reconstruction demand.
The World Bank estimates Ukraine’s rebuilding costs at $486bn, with heavy demand expected for construction materials, transport infrastructure and housing. While Morgan Stanley predicts Ukraine can meet most of its own needs, it will likely rely on imports for 14% of cement and all sheet glass requirements.
Managers see the reconstruction theme as a significant opportunity.
The moves come after Trump’s meeting with Putin in Alaska, which fuelled speculation of progress toward ending the conflict.
