Funds and trusts the pros are buying and selling: Q2 2026

As markets move into the second quarter of 2026, the FTSE 100 remains firmly in five-figure territory after breaking through the 10,000 mark for the first time at the beginning of the year.

The index has continued to test new highs, although its momentum has become more uneven in recent weeks.

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At the moment, it seems like markets are being pulled in two directions. On one hand, equities, particularly in the US, are hovering near record levels, supported by resilient earnings, easing inflation data and continued optimism around artificial intelligence (AI).

On the other hand, volatility has returned as geopolitical tensions in the Middle East escalate, with the US–Iran conflict disrupting oil supply routes and pushing energy prices higher.

Against this backdrop, our fund-of-funds investors continue to take a range of approaches to portfolio positioning.

They favour globally oriented strategies, although there has been greater interest in Japan to tap into corporate governance reforms, as well as eyeing opportunities in emerging markets.

Each quarter, our multi-manager panel shares their current bull and bear perspectives, along with the funds and investment trusts they have recently bought, added to, or sold.

Vincent Ropers, co-manager of IFSL Wise Multi-Asset Growth & IFSL Wise Multi-Asset Income

Reason to be bearish: the tailwinds of abating inflation, increased fiscal stimulus and looser monetary policy are quickly being eroded by US President Donald Trump’s war in Iran. A prolonged conflict could see an inflationary recession with central banks and governments having few options to ease the pain.

Reason to be bullish: the good news is that the closure of the Strait of Hormuz has not yet caused irreparable damage and that Trump is increasingly under pressure to end the conflict quickly given domestic pressures and upcoming mid-terms elections. A swift peace agreement would allow a resumption of the positive economic backdrop from earlier in the year.

Bought: Ropers added a new position in HgCapital Trust Ord (LSE:HGT), the largest investor in private technology companies in Europe, which he used to own until the end of 2020 when valuations got too expensive in his opinion. He says: “After a close to 30% fall over a week at the end of January and with the discount widening to levels rarely seen in its 31-year history, we took the opportunity to start rebuilding a position.”

Ropers argues that while mainstream investors woke up to the AI threat only recently, the team at Hg have been working with their underlying companies for years to develop and integrate their own AI capabilities and moats, which should put them on a strong footing for the challenges ahead. “It will surely take time for investors to get convinced that this is indeed the case, but we believe that this will be an attractive entry point for patient investors,” adds Ropers.

Increased: after a weak few months of performance for the trust, Ropers increased his allocation to Pershing Square Holdings Ord (LSE:PSH). The portfolio is comprised of durable, quality, large US companies which could prove defensive in a weaker growth environment. “The manager has historically added value in difficult market conditions like the one we are now in and some idiosyncratic positions in the portfolio offer attractive uncorrelated upside potential,” says Ropers. The discount of 20-25% also seems too wide for such a liquid portfolio, particularly with the prospect of a US version of the vehicle being launched later this year, which would offer arbitrage opportunities.

Trimmed: with gold rallying from $4,500/oz to $5,500 earlier in the year and Jupiter Gold & Silver I GBP Acc returning close to 30% in a short period of time, Ropers trimmed his position to lock in profits and manage risk. This is in continuation to what Ropers and his team have done the whole of last year when the performance turned exponential.

Despite a turn in fortune since the start of the war in Iran, he maintains a position in the fund as he believes that gold miners are in a strong position to weather inflation cost pressure thanks to great cash flows and that they remain cheap relative to the gold price. “The latter could also see flows again thanks to an increased desire to diversify from the US dollar due to the unpredictability of the US government,” he says.

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Paul Green, co-portfolio manager, CT Global Managed Portfolio Trust

Reason to be bullish: economic fundamentals are broadly positive, and corporate earnings growth is broadening beyond technology companies supporting equity market strength. March volatility has reset investor positioning somewhat and markets have de-rated, potentially offering long-term investors a more attractive entry point.

Reason to be bearish: the length and depth of the hostilities in the Gulf, particularly the restrictions of commodity transportation through the Strait of Hormuz, will have an impact on inflationary pressures in developed economies.

Bought: during January, Green introduced a new position to the portfolio with the Nippon Active Value Ord (LSE:NAVF) fund.The trust, managed by Rising Sun Management Limited, seeks to capitalise on the Japanese corporate governance reform revolution. They look to take stakes in undervalued businesses, typically those with a large proportion of their balance sheet in cash or listed securities/realisable assets.

“They then look to encourage company management to adopt improved governance standards and to drive shareholder returns through enhanced capital allocation policies,” says Green.It is a concentrated investment approach, with top 10 holdings accounting for over 70% of the portfolio and typically invested in small to mid-cap Japanese equities.

Increased: Green and his team have added to their holding in the Odyssean Investment Trust Ord (LSE:OIT)over the quarter. It is a high-conviction UK small-cap trust. “Our view is UK small-cap remains good value, albeit it is difficult to see catalysts to drive a re-rating,” says Green. As a result, he has shifted some of his UK equity exposure into investment trusts, where engagement is a key pillar of the investment process, such as with the Odyssean trust.

Sold: he fully sold the holding of Augmentum Fintech Ord (LSE:AUGM) following a bid by Verdane, a Norwegian growth buyout firm, towards the end of the month. The bid, at 111p, was at a 27% premium to the undisturbed share price but at a discount to the last published net asset value (NAV).The bid came about following a persistent and deep discount, which began in 2022, giving the company a limited ability to raise capital. “That, along with a challenging realisation environment, led the board to consider alternative routes to liquidity and realisable value for shareholders,” adds Green.

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Tihana Ibrahimpasic, portfolio manager on the multi-asset team at Janus Henderson Investors

Reason to be bullish: should Middle East tensions continue to ease, markets are well-positioned to look past near-term disruption and refocus on a supportive backdrop of fiscal stimulus, recovering manufacturing activity, and the lagged benefit of interest rate cuts made over the past year.

Reason to be bearish: a prolonged closure of key shipping routes risks combining an energy and commodity price shock with a slowdown in global growth — a difficult combination for central banks to navigate and one that could weigh meaningfully on economic activity and market confidence.

Bought: Ibrahimpasic opened a new position in the FP Carmignac Emerging Markets A GBP Acc fund, a high-conviction, growth-oriented global emerging market equity strategy that seeks to outperform the MSCI Emerging Markets benchmark over a full cycle by investing in quality, cash-generative, self-financing companies operating in countries with strong macro fundamentals.

It’s a concentrated portfolio of 35 to 45 names with high active share, emphasising strong free cash-flow profiles, low gearing, and capital-light business models, with current high-conviction positions in Asian tech leaders (Taiwan Semiconductor Manufacturing Co Ltd ADR (NYSE:TSM), SK Hynix) and Latin American franchises (Grupo Banorte, Electrobras). Ibrahimpasic says: “Historically, the strategy has delivered positive alpha not only versus the broad benchmark but also above its prevalent style — predominantly large- and mid-cap growth — demonstrating genuine stock-selection skill beyond factor exposure.” With that said, performance is style-sensitive and drawdowns can be material during cyclical rotations, supporting a conservative approach to sizing. 

Increased: she added to her holding in the US value manager – Dodge & Cox Worldwide US Stock A GBP fund – off the back of somewhat softer returns compared to their prevalent style in recent months, and generally strong risk-adjusted return profile over medium- to long-term. “Dodge & Cox US Stock has been a long-standing position in our multi-manager book, and the strategy represents one of the longest track records in the US value space,” says Ibrahimpasic.

Sold: she closed her position in WS Gresham House UK Mlt Cap Inc C £ Acc strategy, which is run by a well-established team and seeks to invest in high-quality, generally small-cap businesses. “Our exit was a result of tactical rotation towards large-cap names within UK equities,” she says.

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The multi-manager panellists

Vincent Ropers is a portfolio manager at Wise Funds, responsible for multi-asset strategies, using value and fundamental investment styles. He is co-manager of IFSL Wise Multi-Asset Growth and IFSL Wise Multi-Asset Income.

Paul Green along with Adam Norris along with became co-manager of CT Global Managed Portfolio Growth Ord (LSE:CMPG) and CT Global Managed Portfolio Income Ord (LSE:CMPI) on 1 June 2025. They have both been part of the multi-asset team at Columbia Threadneedle since 2016 and 2007, respectively, and have a combined investment experience of 35 years. The two investment trusts specialise in buying other investment trusts.

Tihana Ibrahimpasic is a portfolio manager on the multi-asset team at Janus Henderson Investors. Prior to taking this role in 2021, she was a research analyst in the team from 2018.