Mark Breedon of the Investec Global Free Enterprise Fund thinks so. Breedon told Reuters that as interest for emerging markets fades, fund managers are looking for refuge in a safer haven, such as large caps. In his case, specifically large caps in the U.S. “The big question is whether we are close to a major inflection point – a significant slowdown with inflation coming through, leading to a general rush into U.S. large caps,” said Breedon, who said his fund started cutting its exposure very early in the year because “there was very little valuation support.” His fund usually invests in small and midcaps, but “with earnings revisions coming through, things are looking relatively good” for large caps.
