Rathbone Unit Trust Management's global fund manager James Thomson has warned investors to avoid areas including banks and giant technology companies as they position portfolios for 2013.
Thomson, running the group's successful £183m Global Opportunities fund, said he was avoiding a number of sectors across global equity markets, with problems on the horizon for areas including banks, miners, and even more defensive sectors such as utilities.
Thomson, who has returned 36.6% to investors over the last three years, outstripping peers in the IMA Global sector who returned 18.7% on average, said: "There are a number of areas to avoid.
"I have no exposure to banks, mining, autos, utilities, traditional retail and tech dinosaurs, among others."
Thomson, speaking at Chelsea Financial Services' investment dinner, said once popular areas for investors - such as banks - remain beset with problems.
"Banks are downsizing and have structural problems, and regulatory problems, while I also have no miners - partly because of the China slowdown," he said.
"I am also avoiding tech dinosaurs who have missed the largest shift in technology in a generation."
Companies like Intel, Dell and Microsoft dominated the technology space for years, but Thomson said such groups had missed out on the smart phone/tablet revolution pioneered by the likes of Apple.
"They invested billions into smart phones, but who has 98% of the chips in mobile phones? ARM (the UK-listed company) does, so I think these companies are in real trouble," he said.
As for where investors should put their money, Thomson said companies with pricing power looked attractive in a low growth, low inflation environment.
As a result, he owns luxury goods groups, as well as credit card companies such as Visa and Mastercard.
Updating your subscription status