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Top multi-managers have warned the US is a long way from economic recovery, despite decisive action from the government and the Fed.

At an Investment Adviser roundtable on US equities, Gary Potter, co-head of multi-manager at Thames River Capital, said: "The markets are moving from a financial crisis to an economic crisis. We are still in the recovery ward. The effects of the economic downturn are going to last years, not months. It's at least 12 months of bad news and recapitalisation and so forth."

Multi-managers generally agreed with Tom Caddick, head of multi-manager fund selection at LV=, who said of state intervention in the crisis: "We can all say we're not true capitalists and the government shouldn't get involved, but it's the right thing to do."

But John Husselbee, chief executive of North Investment Partners, said the authorities had acted too late and, in the longer term, wealth would continue to flow away from the US towards Asia.

"The Fed didn't know what they were doing," he said. "They've been behind the curve on so many occasions. In the short term, it's easier to point towards the optimism in the US. Further down the line, you're seeing a transfer of wealth from west to east."

Aidan Kearney, co-head of multi-manager at Credit Suisse, said banks had reduced the risk of a 1929-style depression, but added major issues such as unemployment would continue to cause concern.

"Let's not kid ourselves. This is going to go on for a long time."

Participants in the roundtable said, in the longer term, the US government would have to judge its interest rate policy carefully to avoid a repeat of the unsustainable boom following low interest rates earlier in the decade.

As Mr Kearney put it: "One per cent interest rates got us into this mess, and now we have got interest rates at 1 per cent and lower."

However, Mr Potter said new consumer attitudes would make a rerun unlikely.

"People who are losing their jobs aren't going to binge again," he said.

Although the US is a highly efficient market, making it very difficult for an active fund to outperform the benchmark, Jason Britton, chief executive of T Bailey Asset Management, said multi-managers needed active styles more than ever to avoid troubled sectors.

T Bailey, North and Credit Suisse have used index-tracking ETFs during the market crisis. Credit Suisse and North in particular used opportunistic bets to gain money during volatile upswings.

In October, Credit Suisse dipped into S&P 500 iShares when the markets went down and sold them after they had rallied.

North also bought on weakness during the month, hailing a once-in-a-generation buying opportunity on a three to five-year basis.

Mr Husselbee said the temptation to turn into a trader during the downturn was strong, but managers risked getting burned by taking short-term bets.