Dalton SP's Peter Kaye rotates into defensive stocks

Dalton SP's Peter Kaye has slashed his exposure to energy and technology sectors in favour of defensive stocks on negative US sentiment, but forecasts a bounce back in the US equity market.

According to Nabeel Mughal, co-manager of the £98m Melchior North American Opportunities fund with Peter Kaye, poor sentiment has forced US equity investors into rotating out of economically sensitive cyclical stocks like energy, telecoms and technology into more defensive stocks like healthcare. "This time round investors have anticipated the end of QE2. That is one of the reasons from the end of February, beginning of March, there has been an internal rotation into more defensive stocks like healthcare and telcos, where revenues are less economically sensitive than the likes of consume...