Tom Stevenson's Fund Picks for 2026: MoneyWeek Talks
•February 4, 2026
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Why It Matters
The recommendations signal a broader market shift away from US‑centric portfolios, guiding investors toward diversified, value‑oriented assets that could reshape fund inflows in 2026.
Key Takeaways
- •US exposure dropping; global fund holds ~50% US.
- •UK market deemed cheap, old‑economy sectors attractive.
- •Emerging markets favored as dollar weakens, growth rates high.
- •Diversification strategy aligns with post‑2025 market rotation.
- •Fund picks target value and growth across regions.
Pulse Analysis
The past three years have seen US equities dominate global returns, inflating valuations and prompting analysts to warn of a potential correction. Tom Stevenson’s outlook reflects a growing consensus that investors should temper US exposure and seek markets where price‑to‑earnings multiples remain reasonable. By selecting a global fund with roughly half its assets outside the United States, he offers a pragmatic route to maintain worldwide equity participation while reducing concentration risk, a key consideration for tax‑advantaged accounts like ISAs and SIPPs.
In the United Kingdom, Stevenson identifies a pronounced valuation gap relative to the US, especially in sectors such as pharmaceuticals, banking, and mining. The Fidelity Special Situations fund capitalises on this discount, providing a concentrated vehicle for investors to capture upside in an undervalued market. For UK‑based savers, the fund aligns with a defensive yet growth‑oriented stance, offering exposure to stable, dividend‑paying companies that can deliver steady returns even as global markets fluctuate. This approach resonates with investors looking to balance risk and reward within a familiar regulatory environment.
Emerging markets present a complementary growth story, driven by younger populations and faster GDP expansion. Stevenson notes that a weakening US dollar and easing American interest rates create a favorable backdrop for these economies. The Lazard Emerging Markets Fund, with its track record of navigating volatility, positions investors to benefit from higher growth rates while mitigating currency risk. As global capital flows diversify, such exposure could become a cornerstone of a resilient, multi‑asset portfolio for forward‑looking investors.
Tom Stevenson's fund picks for 2026: MoneyWeek Talks
Which funds should you consider putting your money into this year? Fidelity's Tom Stevenson reveals his top three picks for 2026 to put in your ISA or self‑invested personal pension (Sipp).
In this episode of MoneyWeek Talks, Tom Stevenson tells Kalpana Fitzpatrick why he recommends these funds and how you can work out what’s right for you.
Tom Stevenson's top funds for 2026
Coming up with fund recommendations following three strong years for the stock market is challenging, Stevenson told MoneyWeek on the podcast.
This is especially the case because you don’t want to catch the top of the market and recommend people buy funds just as the market turns for the worse. That means looking outside the more traditional places is more important.
Stevenson explained:
“We saw that the US stock market, which had led markets higher for many years, started to fall behind a bit last year, and other markets picked up the baton.
“We saw strong performances from European shares, but also from emerging markets, and the UK market which also did well last year – that was the context in which I was thinking about which funds to recommend this year.”
The investing trends seen in 2025 are expected to continue into the year ahead, Stevenson said. He anticipates more investors will look to diversify their holdings out of the US, which has been a strong market but also an increasingly expensive one.
Stevenson predicts investors will instead start to put more money into other markets around the world that may provide better value – ones that are cheaper, but still have good growth prospects.
Dodge and Cox Worldwide: Global Stock Fund
Stevenson’s first pick capitalises on his prediction that more investors will diversify their holdings out of the US.
He chose the Dodge and Cox Worldwide: Global Stock Fund because, unlike many global funds that have a very high exposure (around 70 %) to the US, this one is much less exposed – US stocks only account for around 50 % of it.
He told MoneyWeek:
“Given what I said about this rotation out of the US continuing this year, that's one of the reasons why I like this fund. And it's also got a bit of an emphasis away from the types of shares which have done really well, specifically the sort of technology and AI stocks which have driven very high valuations in the US.
“[The fund] actually invests in other sectors. It's got a very wide range of companies all around the world, from Taiwan to the UK to Europe, as well as some in America. That's my number one pick.”
Fidelity Special Situations
Stevenson’s second pick is Fidelity’s Special Situations fund, which is mostly focused on UK stocks.
Why invest in a UK fund? Stevenson said it’s because the UK market is undervalued – and very different from the US.
“Unlike the tech‑focused US, the UK is more in sectors like pharmaceuticals, banking, mining – quite old‑economy sectors, if you like, which have actually started to do quite well.
“And the main attraction of the UK, for me, is that it's very cheap compared to the US. So as investors are moving out of the US and looking for other opportunities, then they're going for markets like the UK, which is, which is really, really cheap – I think the Fidelity Special Situations Fund is a really good way of accessing that.”
Lazard Emerging Markets Fund
Even though emerging markets have underperformed the American market, Stevenson believes they could make a comeback in 2026.
“We've seen in the past that you get long periods in which either the US does well or the rest of the world does well. We've had a really long period in which America has outperformed, and I think we're now getting to a stage where that rotation is happening and emerging markets look attractive.”
Stevenson added that there are more good, long‑term reasons to invest in emerging markets too. He said they tend to have higher growth rates and young, growing populations. Furthermore, emerging markets tend to be most attractive when the US dollar falls back. As interest rates come down in America, Stevenson thinks “the dollar is likely to continue to fall, and so we think that's a good backdrop for emerging markets”.
The fund he picks to capitalise on this is the Lazard Emerging Markets Fund, which he says has a good track record of investing in these markets.
About the podcast
MoneyWeek Talks is a podcast that helps you unlock the secrets to financial success. Editors Kalpana Fitzpatrick and Andrew van Sickle are joined by influential guests – from CEOs and entrepreneurs to economists and policymakers – to share their top tips on managing money, investing wisely and building wealth.
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