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What is driving Threadneedle UK Absolute Alpha's short book?
by Danielle Levy on Oct 23, 2013 at 10:34
He also remains positive on Wolseley, despite recent weakness due to its US exposure.
‘Tactically a lot of shares exposed to the US have been quite weak, but we probably have more belief in the sustainability of the US recovery rather than Europe,’ he said.
‘For Wolsely we have been supportive. It has been quite weak because of tapering, as most think it is a proxy for the US economy but there has been an awful lot of self-help going on.’The decision to buy into UK housebuilders three years ago has helped drive performance. Although Kinder has taken profits on a number of positions, noting that he was much happier buying Persimmon at half of book value, he is keen to still have an allocation to the sector.
Looking ahead, Kinder said Barclays is on the radar. If he were to buy the stock, it would represent a shift for the manager, who has been underweight banks for some time.
‘We have been looking at Barclays very recently, whereby we think that with the rights issue now completed and poor trading over the past few quarters, we note the valuation is very attractive. It is the cheapest bank in the UK domestically and it is cheaper than most banks in Europe,’ he said.
Since launch three years ago, the £115 million fund is up 21%, outpacing the LCI UK Balanced (50:50) benchmark, which rose 17% over the same period, according to Lipper.
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On the road
on Dec 06, 2013 at 14:28