Portfolio manager picks stocks to offset omicron volatility

Published Sun, Dec 5 202110:07 PM EST

The emergence of the Covid-19 omicron variant has rocked global markets, and one portfolio manager has suggested several stocks for riding out uncertain times. "What we think will really make a difference is to have a truly diversified portfolio," Jordan Cvetanovski, founder and chief investment officer of Sydney-based Pella Funds, told CNBC's " Squawk Box Asia " on Friday. Cvetanovski explained that diversification can come from picking stocks with the potential to directly benefit from market volatility, and those that could gain during a prolonged Covid outbreak. Market volatility beneficiaries The CIO said he likes Netherlands-listed Flow Traders as a stock to ride heightened market volatility. Flow Traders is an electronic trading platform and a " market maker " — a firm that helps ensure there is enough liquidity in markets. The stock has a track record of jumping in previous periods of heightened volatility, said Cvetanovski. "If markets are muted, if nothing's really going on, it will just keep ticking along and keep making money but not a lot of money," he said. "But when volatility really ... increases is when these kinds of companies really come to the fore and act as a sort of shock absorber," he added. Another company that could similarly benefit from market volatility is U.S.-listed CME Group , said Cvetanovski. CME operates exchanges that trade various asset classes including futures, options and cash. Covid beneficiaries Investors should also hedge their portfolios against Covid, which is likely to be around for some time, said Cvetanovski. "You need some exposure to companies that might benefit from omicron sticking around," he said. The CIO said such companies include Moderna , which developed a vaccine against Covid, and Thermo Fisher , a maker of scientific equipment including Covid test kits . He also likes telemedicine company Teladoc Health . Shares of Teladoc have plunged over 50% this year — and that's opened up an opportunity to buy, given the company's growth prospects, said Cvetanovski.

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Portfolio manager names stocks that will benefit from the omicron Covid variant

Squawk Box Asia

The emergence of the Covid-19 omicron variant has rocked global markets, and one portfolio manager has suggested several stocks for riding out uncertain times.