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What’s Hot? Biotech hot, Gold goes cold

Posted by: Brian Dennehy
Membership level: Free

An eclectic list this month, with some surprises.

The Top 10 has gone Brazilian (the dominant Latin American market), enjoying a sharp bounce this month.  Whether it is of the “dead cat” variety only time will tell.  It feels right just to watch from the sidelines.
 
Great to see Biotech coming through after our recent coverage, along with Healthcare.  
 
The presence of some US funds might surprise you.  In fact, these funds tend to have more in those biotech/health sectors, plus an overweight to those parts of the technology sector that didn’t get battered in the last month e.g. so little or no Facebook.
 
Gold funds had a horrible month.  Yet looking at sentiment indicators, these have touched historical negative lows in the last few weeks.  This suggests that there might be an opportunity in thee funds.  But only short term, only a punt, and only for the fleet of foot.
 
The appearance of three Premier funds highlights why you should be wary of over-exposing to just one company, as funds will tend to have heavy over-laps – when one goes down, they all go down.  For example, over the last month Shell and ICAP.
 
The L&G fund is very seat-of-pants – a genuine special situations fund.  But it comes with this sort of volatility.  The Marlborough fund is similar, in an even more illiquid area of the market, which can suffer even bigger moves over short periods.
 
The Japanese smaller companies sector is extraordinary because there are only 7 funds, but the differences between fund performances are extreme – and just when you think you’re in the best fund…bang!
 
Last and least, we have the now almost obligatory Absolute Return fund blowing up over one month. Yuk.  City Financial Absolute equity in this instance.

What's Hot

   

Name

Sector

Last Month Performance

Aberdeen Latin American Equity

 Specialist

13.26

Invesco Perpetual Latin American

 Specialist

12.02

Threadneedle Latin America

 Specialist

11.50

Stewart Investors Latin America

 Specialist

8.58

Baillie Gifford Global Discovery

Global

7.08

Janus Henderson US Growth

North America

6.85

Schroder Global Healthcare

 Global

6.62

AXA Framlington Biotech

 Specialist

6.40

Threadneedle American Select

 North America

6.14

Neptune European Opportunities

 Europe Excluding UK

6.00

What's Not

   

Name

Sector

Last Month Performance

City Financial Absolute Equity

 Targeted Absolute Return

-6.15

L&G UK Alpha Trust

 UK All Companies

-5.07

Invesco Perpetual Japanese Smaller Companies

 Japanese Smaller Companies

-4.39

Marlborough UK Micro Cap Growth

 UK Smaller Companies

-2.79

Premier Income TR

 UK Equity Income

-2.59

Premier Monthly Income TR

 UK Equity Income

-2.57

Premier Optimum Income TR

 UK Equity Income

-2.48

Investec Global Gold

 Specialist

-2.11

LF Ruffer Gold

 Specialist

-2.11

Barings Korea Trust

 Specialist

-2.10

FURTHER READING

Topic: Market commentary


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