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Manager Gordon Elvey said he was still cautious of the overall US market, as 70 per cent of the economy depends on consumer spending, which is depressed due to inflation, expensive credit and problems in the housing market.

However, the remaining 30 per cent still holds a number of valuable names, and it is here that Mr Elvey is investing.

"I have found a lot of compelling investment ideas, such as in healthcare, industrials, metals and energy," he said. "Overall, the fund is overweight in the oil and gas, coal and materials sectors, all of which have been performing well in a bearish climate and which will continue over the medium term."

Mr Elvey said despite the ongoing market turmoil and widespread wariness toward US banks and some consumer stocks, he could see some short-term opportunities emerging in those areas of the market.

"I will be increasing the fund’s exposure to financials to take advantage of this temporary market upswing."

Mr Elvey said sectors such as materials and agriculture would benefit from rising commodity prices due to structural shortages, while metals - especially gold and silver - were a store of value in inflationary times and a hedge against the market.

“I believe the US will be ‘first out of the blocks to recovery’ in the medium term after a period of economic recession," he said. "In addition, the US dollar has significant upside potential."