Hamish Douglass, CEO Magellan Financial Group: Markets are fairly priced - the 'reserve bench' is not as deep as it was three years ago

Hamish Douglass, CEO Magellan Financial Group: Markets are fairly priced - the 'reserve bench' is not as deep as it was three years ago. Magellan sees pockets of overvaluation, such as high growth tech which Douglass sees as ridiculously overvalued. But he thinks the market is generally at fair value. As an active manager this makes his job of finding under-priced securities harder. The fund is very comfortable with the portfolio at present, but Douglass is cognisant that when the market is fully valued, it has further to fall. For example as a result of a negative correction in China, or an adverse reaction to the end of QE. He says this is very much why we are looking at the defensive side of the portfolio - to protect people on the downside. Douglass discusses defensive stock, Tesco (NASDAQ:TESO), in this context from the 22 min mark here (VIEW LINK)