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View the article online at http://citywire.co.uk/wealth-manager/article/a700987

The stocks BlackRock's Plackett backs in post-QE world

by Sarah Miloudi on Sep 05, 2013 at 13:41

The stocks BlackRock's Plackett backs in post-QE world

BlackRock's Special Situations star Richard Plackett is backing Aveva and Rotork in a post-QE world.

Plackett, who is A-rated by Citywire, said central bankers' decision to turn off the stimulus tap is a sign that the economic recovery is gaining strength.

Only yesterday a string of data showed the UK's outlook was brightening, with a rush of new business driving services numbers to a six-year high.

Plackett said there are signs of stability emerging in Europe's economy too, where the services PMI reading has also climbed and last month hit 51.3, up from 46.2 in August 2012.

He said he is looking to seize returns from a repairing Europe through holdings in insulation and energy management firm SIG, which has operations in the UK and the Continent and is well positioned to exploit growth in mainland Europe.

Elsewhere, Plackett (pictured) said he has the end of quantitative easing (QE) in sight.

He said: 'Although QE tapering will incite market volatility in the short term, it signifies recovery, and demonstrates that the world is in a more stable place.

Plackett continued: 'Even in a post-QE world the small-cap market may continue to outperform the large cap market. Since the inception of the Numis Smaller Companies Index in 1955, it has outperformed the large cap index 3.8% per annum on average.

'Companies capable of good earnings growth, with strong management teams, track records and balance sheets are likely to be rewarded with continued market share gain as they reap the rewards by continued investing in difficult times.'

Plackett said that in his £1.7 billion UK Special Situations fund two examples of stocks that should be rewarded are engineer Rotork and computer software firm Aveva.

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  • BlackRock UK Special Situations D Acc
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  • SIG PLC
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  • Rotork PLC
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  • AVEVA Group PLC
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  • Richard Plackett
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