Seasoned financials managers Guy de Blonay and Philip Gibbs believe the ‘quick fix’ that Europe needs is further rounds of quantitative easing and not increasing the size of the European financial stability facility.

This they feel is the only answer for the European Central Bank, a move that they believe will be good for both the euro and the recovery of the European economy.

However, De Blonay, does not believe that we will see the end to the single European currency any time soon, ‘the break up [of the euro] is not imminent…and shouldn’t happen in the next five years’.

The managers’ bearish stance on the eurozone is underlined by the fact they have no exposure to this segment of the market in their £1 billion Jupiter Financial Opportunities fund.

Their only holdings in Europe are London listed firms with global exposure, particularly those with exposure to emerging markets. These include HSBC and Standard Chartered, and firms in Norway, Sweden and Switzerland where credit markets and mortgage lending has recovered.

The general themes driving stock selection in the portfolio are growth in emerging markets at a good price, global financials and recovery. The fund has key holdings in Brazil through Bank Itau and in China through Bank of China.

De Blonay has attributed the portfolio’s recent bout of underperformance on its overly bearish stance. They took this on the basis that the large amount of sovereign risk present in Europe at the turn of the year would negatively impact equities. The duo admitted they expected the situation currently unfolding in Ireland and throughout parts of Europe, to have have occurred earlier in 2010. This situation they felt would be key driver of markets, not the recovery and strengthening of balance sheets in the corporate world.

De Blonay, currently co-manager on the fund will assume full control of the portfolio at the start of 2011, however Gibbs will continue to focus on the macroeconomic picture.