View the article online at http://citywire.co.uk/wealth-manager/article/a749838
Performance review: Henderson Rowe optimistic on finding value in a binary world
by Elsa Buchanan on May 14, 2014 at 15:16
‘In a downturn, you want to be holding the companies that are building their market share, beating up the competition and grabbing parts of the market.’
With that in mind, he is backing French retailer Groupe Casino, which he said has come through tough trading conditions, rising 18% this year.
In fixed interest, where he has 28% in direct positions, he is favouring shorter duration sterling corporate bonds, but said he would reduce this on signs of sterling weakness.
His international bonds exposure, at 14%, includes a position in the iShares Euro High Yield Corporates Bond ETF.
‘A very focused business that has been able to grow internationally and win decent contracts. They also have decent cash flow yield of 6% and their civil engineering skills are in huge demand in new areas, such as coastal erosion and defences, and by the government.’
‘On the back of the European recovery and because it has had a lot of self-help. They have been remodelling their corporate structure, selling the less well performing property division and consolidating their online strategy.’
‘The consumer packaging company fell out of our valuation range, with valuations tailing quite sharply over the last six months on the back of a currency issue. But it’s a great business and I’ll probably buy in again.’
News sponsored by:
As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.
Today's top headlines
With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop
More about this:
Look up the shares
On the road
on Jul 24, 2014 at 10:59