Is this the ultimate stock-pickers market?

Financial traders at the Frankfurt Stock Exchange
Hannelore Foerster | Bloomberg | Getty Images

Global stocks are suffering. The and the Dow Jones industrial average had their worst day of the year on Thursday, both ending down around 2 percent. Stocks remained under pressure Friday, with the Russell 2000 fell into correction territory. London's FTSE is now firmly in correction territory, down over 10 percent from its high in April.

In Europe, there is a similar picture, with the pan-European Stoxx 600 down over 9 percent in the last three months, not to mention China, which after Friday's close of 4.3 percent down on the Shanghai Composite, is now down 32 percent from its June peak.

With global indices sinking across the board, bottom-up, stock-picking strategies are enjoying a revival, as investors relying on index-trackers have had a torrid few months.

Managing director and chief investment officer of SVM Asset Management, an unconstrained stock-picking focused fund manager has seen strong inflows and is seeing a pick-up in interest across strategies in recent months.

Banks are a common thread across the group's strategies, but McClean insists that he is not a fan of financials in general.

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"We are quite specific, we don't particularly like financials. But in the European strategy and for the hedge fund, we see them as participating in this European recovery. In particular we like the ones that are cheap here like Barclays. And we like the Italians, such as Mediobanca and Intesa SanPaolo, they have both done well," he told CNBC.

Year to date, Intesa Sanpaolo is up almost 40 percent and on a three month view, it has managed to outperform much of its peers, losing just over 2 percent. Mediobanca has moved in a similar way.

Outside of Europe, emerging markets is another region where some stock-pickers are making the most out of the volatility. Severe weakness in foreign exchange markets amid a dwindling oil price, China stock market selloffs and economic weakness has frightened off some of the most steadfast macro fund managers.

In these conditions, Jean Medecin, a member of investment committee at Carmignac, France's largest independent asset manager by funds under management, said the current investment climate was perfect for stock-pickers.

"I think it is usually when you have a point of maximum fear that you have got the greatest opportunities, so the Chinese market is so large and so deep that you can't just make an argument out of a few market movements and out of a few stocks," he told CNBC.

"One of the stocks we like in particular, which is a white goods manufacturer Midea, a competitor to Electrolux or Whirlpool, and is trading on less than 12 times for more than 20 percent earnings growth. And it is actually one of the few companies that is benefitting from the weaker renminbi. So there is no such thing as being black and white with the Chinese stock market. I think it is much more like now a stock-picker market and to a certain extent it is a great thing for investment managers," he added.

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In Russia, where equities have historically been highly correlated with the oil price, the MICEX index has bucked the wider trend of weakness and is trading just over 2 percent higher on a three month view.

Equity strategist at UBS, Dmitry Vinogradov noted that the contrast between the RTS Index which is measured in U.S. dollars, and the Micex Index, which is expressed in rubles, is worth noting.

The Micex has remained relatively flat since mid-May when the oil price and, consequently, the ruble started weakening. In contrast, RTS Index contracted by 36 percent since that time, suggesting that the market is primarily driven by the exchange rate. On top of this the RTS Index remains almost twice as volatile as the MICEX Index, he said.

With Brent crude shedding over 33 percent since this year's peak and U.S. crude scraping towards $40 per barrel, Vinogradov is anticipating further weakness in the oil price, which will create certain stock picking opportunities, he said.

"While it is true that the correlation with the oil price is very high for the market overall, the picture is really mixed at the individual stock level. Our analysis suggests that Sberbank, Sberbank Pref, Moscow Exchange and Yandex are the most leveraged to the oil price recovery," he said.

"But non-oil exporters such as Alrosa, Severstal, NLMK, PhosAgro and Uralkali tend to be defensive as the oil price does not appear to be a significant factor explaining their returns," he added.