Post by mangomoney on Jun 16, 2016 11:50:01 GMT 7
Train sees 'terrific' buying opportunity in choppy UK market
'Disparate moves' in portfolio holdings
Nick Train, manager of the £2.3bn Lindsell Train UK Equity fund, has expressed surprise at the "disparate moves" within some of his favourite stocks this year, but said the unexpected weak performance of some of them offers "terrific" buying opportunities.
Train allocates to three broad themes within his UK Equity portfolio: global consumer brands, owners of media or software intellectual property and capital market proxies.
"This mix has served our investors well to date and remains the inspiration for our best current ideas and possible new holdings," Train said.
"In May, I was bemused to see both significant positive and negative moves from companies that offer great exposure to these themes."
The biggest contributors to performance during the month were Schroders, Hargreaves Lansdown, RELX, Sage and Unilever - all "archetypal" holdings for the fund, which make up nearly 40% of the portfolio by value.
However, Train was surprised by the five top detractors from performance - Burberry, Rathbone, Daily Mail, Euromoney and AG Barr, all plays on the same three themes, which together make up around 15% of the fund.
"I suppose all that can be said is the choppiness and lack of momentum in the UK stockmarket in 2016 is well reflected in these disparate moves," Train said.
"I regard the share price weakness of the latter group to offer a terrific buying opportunity."
Train also said he expects June to be "an eventful month for a UK investor", alluding to the EU referendum coming up next week.
"We agree with some commentators that there is scope for a big move either way at the end of the month in one of our key holdings - London Stock Exchange," he said.
"In our opinion, the strategic upside here is much greater than the down. But it could be bumpy."
www.investmentweek.co.uk/investment-week/news/2461617/train-sees-terrific-buying-opportunity-in-choppy-uk-market?utm_medium=email&utm_campaign=IW.SP_04.Daily_RL.EU.A.U&utm_source=IW.DCM.Editors_Updates
'Disparate moves' in portfolio holdings
Nick Train, manager of the £2.3bn Lindsell Train UK Equity fund, has expressed surprise at the "disparate moves" within some of his favourite stocks this year, but said the unexpected weak performance of some of them offers "terrific" buying opportunities.
Train allocates to three broad themes within his UK Equity portfolio: global consumer brands, owners of media or software intellectual property and capital market proxies.
"This mix has served our investors well to date and remains the inspiration for our best current ideas and possible new holdings," Train said.
"In May, I was bemused to see both significant positive and negative moves from companies that offer great exposure to these themes."
The biggest contributors to performance during the month were Schroders, Hargreaves Lansdown, RELX, Sage and Unilever - all "archetypal" holdings for the fund, which make up nearly 40% of the portfolio by value.
However, Train was surprised by the five top detractors from performance - Burberry, Rathbone, Daily Mail, Euromoney and AG Barr, all plays on the same three themes, which together make up around 15% of the fund.
"I suppose all that can be said is the choppiness and lack of momentum in the UK stockmarket in 2016 is well reflected in these disparate moves," Train said.
"I regard the share price weakness of the latter group to offer a terrific buying opportunity."
Train also said he expects June to be "an eventful month for a UK investor", alluding to the EU referendum coming up next week.
"We agree with some commentators that there is scope for a big move either way at the end of the month in one of our key holdings - London Stock Exchange," he said.
"In our opinion, the strategic upside here is much greater than the down. But it could be bumpy."
www.investmentweek.co.uk/investment-week/news/2461617/train-sees-terrific-buying-opportunity-in-choppy-uk-market?utm_medium=email&utm_campaign=IW.SP_04.Daily_RL.EU.A.U&utm_source=IW.DCM.Editors_Updates
