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What’s Hot? What’s Not? Dogs bark, stars collapse

Posted by: Brian Dennehy
Membership level: Free
There are chunky profits in the What’s Hot listing – but much greater losses amongst the What’s Not laggards. 
Four gold funds feature in the top 10, chunky profits in one month alone. We highlighted the odds moving in favour of gold back in August. But did not (and still don’t) believe it is more than a short-term punt, as the longer-term trend in gold remains down. Nonetheless, the gold bugs will be out in force and could give some more momentum to this rally in the short term.
A great month for City Financial. But it does also serve to highlight (again!) that the fund is in completely the wrong sector.
The third of three dogs that have barked this month is Latin America. What can I say? If you have been following events in Brazil you know this action is best observed from the investment side-lines.
There is some real damage in the laggards. Technology has been battered and Baillie Gifford as a house were very heavily into tech. Not surprisingly four BG funds feature, albeit they are diverse geographically, if not by sector. 
Small caps are also leading the way lower. We often refer to them as the canaries in the coalmine, giving an early warning of weakness ahead as investors begin to lose faith in their domestic economies, which is what the small caps represent.
The AXA Biotech fund has suffered from both being a form of tech fund and by virtue of a decent small cap weighting. 
Biotech, small cap, and China are obvious areas to look for opportunities on very sharp falls, and are great long-term opportunities for drip-feeding investors.


What's Hot
Name Sector Last Month Performance
City Financial Absolute Equity   Targeted Absolute Return 11.01
Investec Global Gold   Specialist 8.54
Quilter Investors Precious Metals Equity   Specialist 6.24
BlackRock Gold & General   Specialist 6.17
LF Ruffer Gold   Specialist 5.10
Thesis TM Sanditon European Select   Targeted Absolute Return 4.99
Majedie Tortoise  Targeted Absolute Return 4.58
Threadneedle Latin America   Specialist 3.79
Aberdeen Latin American Equity   Specialist 3.51
Templeton Global Total Return Bond   Global Bonds 2.47
What's Not
Name Sector Last Month Performance
JPM US Smaller Companies   North American Smaller Companies -16.39
Baillie Gifford Global Discovery  Global -16.23
JPM Japan   Japan -15.09
Baillie Gifford Greater China   China/Greater China -15.01
Baillie Gifford Long Term Global Growth Investment   Global -14.91
L&G European Trust   Europe Excluding UK -14.84
Marlborough UK Multi-Cap Growth  UK All Companies -14.84
Baillie Gifford American  North America -14.50
AXA Framlington Biotech   Specialist -14.42
Standard Life Investments Global Smaller Companies   Global -14.42
Topic: Market commentary


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