US fund managers are adjusting their portfolios in advance of an anticipated economic recovery next year, according to Standard and Poor's mutual fund strategist Ms Rosanne Pane.
Standard & Poor's released this data through its online service, "Fund Advisor".
Fund Advisor reports that for the month of November, US equity funds returned an average of 7.59 per cent with growth funds outperforming value funds. Large-cap growth funds performed the best, returning 8.75 per cent over the month.
"If you look back at the 1990 recession, one of the key indicators that suggested we were emerging out of the recession was that growth funds were outperforming value and blend," noted Ms Pane.
"This is what the market is witnessing right now. Historically, most of the action in the market tends to come in the six months before the official end of a recession.
"Investors begin to anticipate the start of the recovery, become more optimistic about future earnings announcements, and start shifting assets into equities," she said.
According to Ms Pane, most fund managers are now focusing their attention on technology driven stocks, especially semiconductors.
"Semiconductors are strong-early cyclical plays that are likely to benefit when the US and global economies recover." Ms Pane said.