Neptune's Breese cuts cyclicals as bull run enters 'next phase'

Neptune's Alex Breese has been cutting a number of cyclical stocks in his Special Situations fund to buy into recent market laggards.

The fund manager says he is using the profits from selling shares in building materials firm Cookson and recruitment giant Michael Page to add to holdings in "undervalued growth stocks" - such as supermarket group Tesco and FT owner Pearson. Breese says both companies are examples of stocks to have so far lagged the rally, but have the fundamentals to weather a difficult period of "lackluster economic growth" as the UK struggles with the high level of government and consumer debt. "Tesco is a high-quality business that not only has a leading position in its domestic market but also ha...