Co-head of multi-manager Gary Potter says sectors that have fallen out of favour will come back into fashion.
He says mid and small cap focused funds did well until June 2007 but have fallen to the bottom of the pile since the sector has been hammered.
Potter believes they now represent a long-term opportunity but this does not come without a wealth warning.
He also sees some validity in the trend for Middle East and North Africa funds as he believes these areas to be a fad that could become a theme. However, he is wary of problems posed by a lack of liquidity and choice.
He is also cautious about investing in hard commodities despite his overall view that the bull run in commodities is not about to end.
Potter says: “Oil is a risky position to take because when there is a downturn, demand for oil goes down. High-yield corporate bonds are also too risky. It is too early because the credit crunch is just starting to bite. Corporate bonds have already taken a pasting but good corporate bonds seem to offer some opportunity.”