Brundige expects US large-cap rebound

Manager of Pictet's US Equity Selection fund Chace Brundige believes recent problems have led to re-pricing of risk and marked a turning point for larger companies

US large-cap growth stocks are coming back into favour after six years of underperformance, according to Chace Brundige of American asset manager Waddell and Reed. Brundige runs Pictet's US Equity Selection fund, a Luxembourg-domiciled vehicle with $488m under management. He believes the crisis in the housing market has led to a re-pricing of risk and weakening profit cycle among US companies, but large-cap growth stocks have now reached a turning point. Brundige added that growth companies are also cheap by historical standards. The fund invests in stocks that can demonstrate the poten...