Whitney George, who oversees $30bn at US small-cap specialist Royce, has taken a position in Jupiter on the view asset managers will thrive as the developed world looks to increase savings.
George, the co-CIO of the New York-based Legg Mason affiliate, says the US and many developed world economies have been too reliant on domestic consumption, which will need to be reined back after the era of over-leverage.
"It is going to be a sluggish domestic sector over the next few years as people accept they need to save more. Consumer related stocks are going to be hurt over the next few years," George says.
"But this will have a positive impact on asset management companies for example. The reason we like Jupiter is because it is at a low valuation not normally seen in a good company such as this. We also have Ashmore, another UK stock on a good valuation."
George, the manager of the UK-domiciled Legg Mason US Smaller Companies fund, says Royce is also bullish on stocks related to the recovery in manufacturing.
"Personally I believe we are going to see higher inflation rates than people believe. There is going to be a major emphasis on natural resources all over the world, driven by the emerging markets," he adds.
"We are attracted to stocks in the agricultural sector, such as fertiliser companies.
"Technology is another interesting story, which outside of Amazon, Google and Apple has been largely ignored for 10 years."
