Fidelity Worldwide Investment fund manager Alex Wright has upped exposure in energy and banks despite the “political noise” the sectors have been generating.
Speaking at a Fidelity conference in London last week, Wright, who manages the £2.9bn Fidelity Special Situations fund said there is “clearly a lot of political noise around big business.”
As a result, Wright is eyeing opportunities within the financial sector.
He said: “The Government realises that banks being in a healthy position and being able to lend means they can get out and boost the economy. With the election coming up, I would be quite surprised if there was more negative regulatory moves within the banking space.
“I have been gradually increasing Lloyds as the Government moves towards the retail offering of those shares, as it would be incredibly politically negative to do anything that would make the share price fall if there were thousands of new retail shareholders to think of.”
Wright has also taken a position in SSE despite the political focus on freezing energy prices.
He said: “The problem politicians have is with the retail supply business which is very small. So it is difficult to see profitability being hit.”
Three Counties IFA Andrew Alexander says: “A value strategy naturally increases the potential for short-term volatility so it is like catching a falling knife. Value should outperform in the long-term.”