Paris-based Carmignac, which has e1/449 billion in assets under management, earlier this month set up a "short-selling" basket of cyclical stocks
to benefit from the stock market pull-back.
Overall we hold the view that volatility bouts represent buy opportunities for equities and especially for cyclical stocks
, which are oversold, and in particular for European banks.
We saw opportunities in domestic cyclicals and reduced exposure to metals and global cyclical stocks
," he says.
For instance, when the markets were down in June-August 2013, the fund saw an opportunity in domestic cyclical stocks
and bought construction and mid-cap cement companies, besides mid-cap banks.
In our view, cyclical stocks
will keep on performing on speculation the economy has bottomed," Vaibhav Sanghavi, managing director of Ambit Investment Advisors, said in an e-mail interview.
LONDON, Jumada I 11, 1435, Mar 12, 2014, SPA -- European shares fell on Wednesday, with cyclical stocks
retreating on concerns over Chinese growth, persistent tensions in Ukraine and below-forecast earnings reports, Reuters reported.
So-called cyclical stocks
in the basic materials, financial and energy sectors, which tend to rise with optimism over the economy, combined to add 34 points to the index.
In terms of sectors, the more cyclical stocks
are preferred because at present the movement is from a liquidity-driven bull market to a growth-driven bull market.
This is an opportunity to buy cyclical stocks
even though I do expect some sort of a contained pull-back this year and volatility may pick up," Mark Harris, who helps oversee about $1.
European cyclical stocks
bore the brunt of the wider market sell-off as persistent concerns that an improving economic outlook in the United States would prompt the country's central bank to start reducing its ample liquidity support prompted investors to retreat on the last trading day of the month.
Other cyclical stocks
, such as miners, were also out of favour and ENRC was the FTSE 100's largest faller, down more than 7%.
such as miners, banks and energy companies led the FTSE 100 index lower, with Barclays, Evraz, and ENRC among the worst performers, down 2.