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What has Richard Pease bought & sold recently?
by Danielle Levy on Feb 06, 2014 at 12:07
He also remains positive on his holdings in fragrance producers Givaudan and Symrise.
On ‘cash cow’ Givaudan, he explained that ‘to make something taste and smell good costs 1%’ and this is an investment that large good companies such as Nestlé are willing to make to maintain their reputations.
‘There are very real barriers to entry in that business. The emerging market story is catching up but in the mature market, it is about healthier eating. We want organic stuff and actually it is quite technically clever to achieve these things,’ he said.
‘You can see quite a sensible long-term growth in the mature market and emerging markets for a very long time. I can’t see it stopping any time soon. We are very happy as long-term shareholders.’
Global healthcare company Novo Nordisk gives him access to consumption trends and healthcare growth in emerging markets. Pease refers to it as a ‘bit of a play on the Chinese getting fat’ through Novo Nordisk’s diabetes products.
Although he acknowledges long-term holding Schindler, which manufactures elevators, has ‘missed the Chinese boat’, he says it is still a ‘good potential margin story’.
Lubricant maker Fuchs Petrolub and Kerry, which supplies food and beverage ingredients, also remain top picks.
Over the three years to the of December, the Henderson European Growth fund has posted a 26.2% return versus a 25.8% rise by the FTSE World Europe ex UK index over the same period, according to Lipper.
Meanwhile, Pease’s European Special Situations fund is up 29.2% versus the benchmark over the same timeframe.
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by James Phillipps on Mar 06, 2014 at 10:52