Increased stock turnover as managers seek to take profits

Managers believe increased volatility will be a key feature for portfolios this year

Fund managers are expecting to turn over greater portions of their portfolios in order to generate returns this year. While last year’s rally created a pick-up in trading volumes, managers believe increased stock rotation will be needed to maintain performance in a year expected to remain volatile. Co-head of Thames River Capital multi-manager unit Gary Potter says this year will be driven by buying and selling. “While it is all very well to say you are a stockpicker and you can do that through 2010, we are seeing more turnover generally and there is an increasing need for rotation...