Time to short UK growth stocks? Sanditon's Russell predicts 'end of up-cycle'

Sanditon Asset Management co-founder Tim Russell has established "nerve-wracking" short positions in popular UK growth stocks as he bids to profit from a potential change in the business cycle.

Ex-Cazenove manager Russell's Sanditon UK Select fund was 9.5% net short growth stocks as a percentage of NAV as of 31 May, representing the portfolio's largest single negative bet on a sector basis. The manager (pictured), who groups stocks together in accordance with his 'business cycle' investment strategy, believes firms are "near the end of this up-cycle", and has taken heart from the recent spike in sovereign bond yields. "The first week of June saw a number of growth stocks succumb to profit taking. That is often the case when bond yields start going up. Companies with high-gro...