PSigma income fund manager Bill Mott has been increasing the holdings in his fund, with the aim of taking advantage of current market volatility.
Mott says he has increased the number of holdings in his £382m PSigma income fund from 70 to 83 since the middle of last year, with new positions in mining, financials and oil and gas.
He says: “There have been times in the last six months where volatility in markets has thrown up value opportunities in some stocks that are now discounting a very poor economic outlook.”
Financial stocks bought in the last three months include private equity firm 3i Group, Intermediate Capital, Tullet Prebon and Man Group, which together make up 1.2 per cent of the fund.
Mott says: “We have put in small financial holdings which are better plays than the banks.”
Mott introduced exposure to the mining sector at distressed prices in the summer sell-off, with 1.4 per cent exposure to Rio Tinto and 1 per cent to BHP Billiton.
Whitechurch Securities managing director Gavin Haynes says: “The sell-off has been dramatic in cyclical stocks. It makes sense to dip your toe in the water with more cyclical stocks rather than just staying in defensive stocks that have had a good run over the last year.”