Investors have turned to speculation on short term data points as a focus on macro policy has dominated markets, according to City Financial’s Leigh Himsworth.
The manager of the £41.2m UK Select Opportunities fund said: “It is pretty scary that people are reacting to numbers. It means they are not ahead of what is going on and not really investing - they are speculating on short term data.”
Amid the volatility this behaviour is causing, Mr Himsworth said he has been taking profits from several companies in his portfolio which performed strongly in the first half of this year, including selling out of a position in National Express in order to cash in on a 20 per cent gain.
Mr Himsworth’s fund was renamed at the start of July to reflect City Financial’s acquisition of Eden Financial last year.
The fund was brought across in October 2012 and has been running since September 2011. Since its launch the fund has gained 36.8 per cent, outperforming both the IMA UK All Companies sector average and the FTSE All Share index, according to FE Analytics.