Sarasin's Mark Whitehead has increased his fund's long equity exposure from 40% to 60% since July, attracted by low valuations and a strong Q2 reporting season.
The co-manager of the £183m GlobalSar IIID fund put most of the money into European exporters who have befitted from a weak euro.
"At the end of June, we saw equity markets driven down by the rolling over of worse than expected macro-data and ongoing fiscal problems in Europe. There has been quite a significant drawdown," he says.
"But it became clear to us ahead of the Q2 reporting season that the companies in which we invest were upbeat, and were talking about a pick up in top-line profits despite the doom and gloom.
"We have been investing in cyclical businesses which have been reporting strong operational leverage and shifting money from the US into Europe exporters which have done well on the back of the weaker euro.
"Even though we have seen the some subsequent appreciation of the euro and strong numbers from Germany, the trade-weighted depreciation of the currency has been helpful," he adds.
Stocks the manager had added to the fund include EADS and BMW.
Whitehead, who recently became co-manager of the portfolio with CIO Guy Monson, has also started adding long-dated gilt exposure, including some maturing in 2039.
"We made the wrong call on gilts. They have been strong over recent months, but we have not really had a enough exposure," he says.
"We have added some long-dated bonds as the yield curve is very steep and you get a yield premium for investing in duration."
