H&W in the Media

It’s Time to do Some Pruning, Portfolio Experts Say

rate hikes

U.S. equities are still the place to be, but it may be time to take some profits in certain names, expert Dave Donabedian told CNBC on Tuesday.

“Growth is good but you don’t want to overpay for it,” the chief investment officer at Atlantic Trust said in an interview with “Power Lunch.”

“Our strategy year to date has really been to look through the portfolio and look for names that have performed very well, where valuations are at the top end of their historical ranges, and do some pruning and recycle those proceeds into areas that perhaps didn’t perform quite as well in the first quarter,” he noted.

Donabedian sees opportunity for growth in areas like energy E&P companies, some technology names that have recurring revenue stream and even some industrial stocks.

Kevin Mahn, on the other hand, thinks there is more value to be found in international markets, which are in the early stages of a recovery.

That said, the chief investment officer at Hennion & Walsh isn’t discounting the potential for the U.S. market to move higher — and he thinks earnings could be the catalyst.

“There’s a chance we could get a double-digit earnings growth rate in the first quarter and if we do, that could propel U.S. large-cap stocks higher, mid cap and small cap will follow,” he told “Power Lunch.”

Mahn thinks investors just have to expect some volatility given the geopolitical and domestic policy uncertainty. He suggests diversifying portfolios by adding international allocations.

CNBC’s Jennet Chin contributed to this report.

<   Click here to watch the interview on CNBC.com.