Equity investors should steer clear of hospitality, advertising, agriculture and industrials if they want to insulate their funds from major disruption.

Citywire AA-rated Gérard Moulin, who runs the Amplegest Pricing Power fund said in his latest investment update, he is focusing on sectors with clear market leaders and avoiding areas where the barriers to entry are not clearly defined.

‘We concentrate our assets on companies dominating their sector. That is those with exceptional positions rather than those with a good or strong potential for excess, which have a 50% chance of leading the pack,’ he said.

‘If you look at hospitality, advertising, agriculture and agri-food and industrials – the leaders are threatened. In hotels, many have posted strong results, so why should buyers beware? New actors are creating a hugely disruptive scenario.

‘In recent years there has been a slowdown in revenue-per-room growth, which is steadily declining. Eventually, even the major brands will have to face up to the impact of seasonal renters, such as Homeways, Airbnb and Trip Advisor, which are now extending their respective reaches.’

Moulin said large-scale agriculture firms are now feeling the pinch in terms of research and development costs falling, while Publicis in advertising has failed to maintain its barriers to entry.

‘It failed to change its state of mind in the digital age despite displaying good intentions,’ he said. ‘The value means the stock no longer fits our "pricing power" remit because the group’s growth is not likely to resume.’

In industrials, Moulin named Air Liquide and Veolia as stocks which have reached market saturation and are now dependent on inflation to boost further growth. This has curtailed pricing power and opened to the door for an insurgent with inflation-agnostic growth to prosper.

The Amplegest Pricing Power fund returned 35% in euro terms over the three years to the end of May 2017. This compares to a 24% rise by its Citywire-assigned benchmark, the FTSE World Europe TR EUR, over the same period.