Rob Burdett, multi-manager at Thames River Multi Capital
"The fund that immediately springs to mind is Schroder UK Alpha Plus. Richard Buxton runs a concentrated, high-conviction portfolio which quickly recoups losses after a down market.""It’s got a lot in financials which are very cheap at the moment, and a few Asia plays which get blown up and down by the direction of the market."
"It was a top performer in the 2009 and 2010 recovery, and it would probably fare very well if we were to see another surge."
"That is not to say, however, that Richard is gung-ho. He’s also very good at offsetting risk, and only holds quality companies. It’s a fund I hold across quite a few of my portfolios."
Schroder UK Alpha Plus substantially outperformed the FTSE All Share during 2009 and 2010, but it has lost 4.52 per cent more than its benchmark so far this year.
Juliet Schooling-Latter, head of research at Chelsea Financial
"Europe is by far the most over-sold area of the market at the moment, which is understandable. However, if there was a resolution in the eurozone, we would see a substantial surge in performance as the market will have come from such a low level.""Of course, the debt situation could go either way, but it is difficult to envisage a circumstance where the euro will be allowed to fail."
"Most European funds are cautiously positioned at the moment, but HSBC European Growth is one of the few that isn't overweight defensives, as the manager thinks these stocks are too expensive. It has quite a lot of exposure to European banks, which have been one of the worst hit areas recently."
"It has underperformed quite significantly of late, but if the panic were to be taken out of the market, it is a fund that is likely to do well."
According to FE Analytics, HSBC European Growth has lost 14.15 per cent in the last month - 1.38 per cent more than the average Europe excluding UK fund. It has outperformed its sector over one-, three-, five- and 10-year periods.
Joe Le Jehan, multi-manager analyst at Cazenove Asset Management
"The direction of markets appears quite binary to us at this point. Any bounce from this point would likely be a signal that the market no longer has such deep recessionary fears going forward."
"In this environment, some of the more cyclically orientated funds, invested in areas such as industrials and mining, are likely to do very well – namely GLG UK Select and Rensburg UK Mid Cap Growth Trust.
"Both have historically proved adept at managing portfolios in these environments and have concentrations in some of the more cyclically sensitive areas in their current portfolio."
FE Alpha Manager Paul Spencer’s Rensburg UK Mid Cap Growth Trust has 31.97 per cent of its portfolio in industrials, 6.46 per cent in oil and gas, and 4.67 in basic materials. Cobham, Fenner, Premier Oil and Yule Catto all appear in the fund’s top-10 holdings.
It was a top-quartile performer during the recovery in 2009 and 2010.
Basic materials and industrials are also the GLG UK Select fund’s biggest overweight positions. Manager John White has underperformed his FTSE All Share benchmark by 3 per cent since the fund’s launch in August 2009.
Neil Shillito, director of SG Wealth Management
"I’m not at all bullish at the moment, but if we were to see a bounce, Nigel Thomas’ AXA Framlington UK Select Opps fund would be a good bet.""Nigel’s been in the industry for a long time and is capable of reading short-term movements in the market very well. His fund has the flexibility to move in and out of stocks very quickly, so he can take advantage on sudden bursts."
"He has expertise in many areas, whether it be changes in the oil or gas price, which aids him in his stock selection."
Only six UK All Companies funds have returned more than AXA Framlington UK Select Opps in the last decade.
Graham Toone, manager of Margetts St Johns Realistic Core
"If we were to experience a big rebound, funds with a high exposure to the worst-performing sectors of this year are likely to do the best." "Banks have been one of the worst areas hit, so Richard Buxton’s Schroder UK Alpha Plus fund could be a good bet. It has a high exposure to banks, and has taken a bit of a battering since the markets turned in August."
"However, a high-conviction portfolio like this would do well if the markets were to rally."
Buxton’s portfolio currently holds Lloyds, Standard Chartered, Barclays and RBS.