Sanditon Asset Management co-founder Tim Russell has established "nerve-wracking" short positions in popular UK growth stocks as he bids to profit from a potential change in the business cycle.
Ex-Cazenove manager Russell's Sanditon UK Select fund was 9.5% net short growth stocks as a percentage of NAV as of 31 May, representing the portfolio's largest single negative bet on a sector basis. The manager (pictured), who groups stocks together in accordance with his 'business cycle' investment strategy, believes firms are "near the end of this up-cycle", and has taken heart from the recent spike in sovereign bond yields. "The first week of June saw a number of growth stocks succumb to profit taking. That is often the case when bond yields start going up. Companies with high-gro...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
