Mott trims cyclical exposure after recent sharp rally

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PSigma Income fund manager Bill Mott has begun to trim exposure to cyclicals after a number of stocks in the portfolio staged sharp performance spikes over recent months.

While noting a sharp improvement in investor sentiment recently, Mott says in the same way as cyclicals became "ridiculously oversold" at the bottom, investors could get carried away on the perceived strength of economic recovery. Mott has begun to reduce exposure to a number of top performing stocks - including Travis Perkins, which has moved up from 213p on 5 January to 790p, and Enterprise Inns, a stock up from 30p to 178p in just over three months. "As always, stock markets tend to overshoot and the performance of economically-sensitive stocks may have further to run," Mott says. ...

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