There are a large number of opportunities for those hedge funds which make intelligent choices in the next 12 months, an expert has claimed.

There are a large number of opportunities for those hedge funds which make intelligent choices in the next 12 months, an expert has claimed.

Tom Ewing, UK growth fund manager at Fidelity International, reported that stock pickers will be able to secure large returns, as almost every leading indicator is positive.

He stated: "There is less daily volatility and it feels like a great environment for stock picking. The environment is not free from risk; extraordinary government intervention is difficult to predict and consumers in the west remain highly leveraged."

Equities look like they will perform better than other asset classes, although he suggested that the phased withdrawal of monetary stimulus could threaten the stability of the economy.

Earlier this month, City Index market analyst Nick Serff claimed that European equities are currently undergoing correction.

He said that uncertainty over Chinese growth and low earning figures have contributed to this instability.