Ardevora partner Gianluca Monaco has added 17 shorts to the £5m Ardevora global equity fund since August.
The fund, run by Monaco, Jeremy Lang, William Pattison and Ben Fitchew, now has five short positions in industrials.
Monaco says: “It is difficult to call where the industrial sector will go, especially as industrials are really cyclical. We have to ask if this is a slowdown as we saw in the cycle of 2003 and 2004 or are we in a repeat of what we went through in 2008 and 2009?
“We are generally seeing more short opportunities than long ones in industrials so we are relatively cautious about the sector.”
The global equity fund returned -0.98 per cent from launch in February to August 31. The FTSE world total return index is down by 9.82 per cent over the same period.
Skerritt Consultants head of investments Andrew Merricks says: “We have gone short on industrial metals in the last month. It is certain that the world is going into a slowdown and if you can short, it is a good time to do that.”