Managers split over cyclicals and defensives

Volatile markets causing wide difference of opinion among managers in the cyclicals vs defensives debate

Volatile markets are leaving managers at odds in a cyclicals vs defensives debate. The equity rally earlier this month that has seen the FTSE 100 rise to nearly 4,000 (3,952.81 at 23 March) has managers split on whether to start repositioning portfolios in favour of cyclicals. Clive Beagles, senior fund manager of the JO Hambro Capital Management Group UK Equity Income fund, says he is convinced cyclicals will deliver in this market. In February, Beagles raised potential problems with defensive stocks while other managers were preaching the positive side. Looking at the effect the r...