City Financial multi-manager Mark Harris has made his first allocation to the $1.1bn (£775m) Legg Mason Clearbridge Aggressive US Growth fund as he predicts a shift to growth fundamentals in 2014.
Co-managed by Evan Bauman and Richie Freeman, Harris says the Legg Mason fund caught his eye due to its management stability and its low turnover.
Harris says: “We have put 1 to 2 per cent across most portfolios into the Legg Mason Aggressive US Growth fund. It may seem an early move to as we will see value and dividend story do well in the short term.”
“But as we turn into 2014, I think what might be the case is if growth numbers are still looking like they are progressing then I think we will see switch to more growth oriented strategies.”
Harris says he may add more to the fund over time and made the initial investment with newly freed-up cash.
He says: “In mid-July I thought markets had got a bit ahead of themselves so I trimmed some equity positions. I had a bit of cash and I put it back to work.”
EA Financial Services owner Minesh Patel agrees with this pre-emptive move to growth, but is less convinced about the active investment strategy.
He says: “I definitely see the economic cycle moving more to a growth focus. But when it comes to accessing a core market like the US I would prefer to use passive funds, as I would question whether a US manager add much more than the market.”