Being defensive proves the best plan of attack in Europe

High volatility in European markets has made it difficult for stock picking skills to show through, according to Hitesh Bharkhda, alternative investment business manager at Threadneedle. 'Funds that have done well have moved exposures very quickly and/or maintained low market exposures,' he says. 'Fundamental stock pickers will probably have struggled.'

The key has been to run a defensive portfolio in sectors such as healthcare, utilities or tobacco.

Recently there has been a change in the market