'AMAZON -ALIBABA OVERVALUED'

New York : The world's biggest companies could be hiding the biggest risks.

That's because companies such as Amazon.com Inc and Alibaba Group Holding Ltd are overvalued according to Robert Naess-

A portfolio manager in the  Multi Asset team who manages about US$42 billion in stocks at Nordea bank AB, Scandinavia's largest bank.

''I'm a bit worried about the valuation of these very popular companies,'' said Naess in Oslo on Friday:

 ''The big stocks have become more expensive. There's a danger of bubble in them.''

Naess and his partner, Claus Vorm, quantitatively ananlyse thousands of companies, investing in those with the most stable earnings and avoiding expensive stocks, a strategy which has-

Delivered a 10 percent return for the Global Stable Equity Fund this year. It has returned 12 percent on average in the past five years, beating 75% of its peers.

''Long-term, five to 10 years, stocks that are expensively priced, such as Amazon, Tencent and Alibaba, will give a low return.'' said Naess.

''I'm pretty certain that in the next 10 years, the return on those will be lower than than the market.''

The fund holds Apple Inc and Alphabet Inc, which are ''reasonably priced''.