​Autos Relative Value Attractive As China Market Struggles

Owning volatility in automobile single stocks in Europe versus the Eurostoxx 50 or DAX index is pricing attractively given the dependence of these names on the economy in China, as stocks in the country continue to fall, according to Daniel Danon and Tobias Knecht, portfolio managers at Assenagon Asset Management in Munich. In early July, for example, a number of auto names underperformed the rest of Europe as China shares tumbled.