US investors sheltering in cash as politicians grapple with the debt crisis are set to reinvest during a short-term correction they said could see equities sell off as much as 10%.
Diane Sobin has joined Threadneedle as a fund manager on the US equity desk, following the departure of Andrew Holliman to Polar Capital in May.
Chuck Royce's small-cap-focused US firm has track record spanning four decades.
US and Asian markets fell overnight on fears the US government will fail to resolve its debt crisis, ahead of a crucial vote by the House of Representatives today.
Money market funds in the US are building up liquidity as fears of a downgrade or default on the nation's debt intensify ahead of debt ceiling vote.
M&G's head of retail fixed interest Jim Leaviss has warned the US will see its credit rating downgraded to AA shortly after next year's presidential election.
Business secretary Vince Cable has hit out at what he described as "a few right-wing nutters" holding up a deal to cut US government debt.
J.P. Morgan is set to overhaul its £292m America Equity fund next month, slashing 50% of the portfolio's holdings.