05/10/2009
Pictet bets on growth large caps
Agefi Switzerland reports that Pictet estimates that hopes of a V-shaped economic recovery are in vain, and that a W-shaped recovery from the current economic downturn is to be expected. “We are on the upturn, but with contrary forces set to influence this in the future, such as the withdrawal of stimulus packages and the end of quantitative easing, which will lead to a slowing of growth,” Daniel Becker, manager of the Pictet US Equity Growth Selection fund at Waddell & Reed, explained on Friday. The fund is focused on the best-positioned growth large caps, which, from the manager’s point of view, will be likely to benefit from a recovery in growth in developed countries. This advantage is all the more appreciable when these firms may also benefit from a possible recovery of the weak US dollar. They will also be capable of maintaining strong organic growth, the manager claims, and these growth shares have not been valued accordingly - particularly tech stocks, which have suffered from a bear market for nine years, he says.
