Baillie Gifford's Patrick Edwardson has been increasing equity exposure in the
£370m Scottish American Investment trust during the recent market volatility.
The manager has trimmed some of his cash and bond holdings, redeploying into equities at attractive valuations. He prefers stocks offering exposure to emerging markets, either directly or indirectly.
New additions to the fund include fast food giant McDonald's.
"This is a large established company whose strength is the fact its franchise can be rolled out globally. There is a lot of underappreciated value in this stock," he says.
"Generally there are going to be more McDonald's stores around the world, with the growth coming from countries like India and China."
Edwardson has also added Portuguese company Jerónimo Martins and Brazil's OGX.
"The main attraction of Jerónimo is its chain of supermarkets in Poland" he says.
"Poland's economy is growing and it has a younger demographic than the rest of Europe.
If you combine that positive macro picture with a business which is well run, the odds are on the company growing."
Although, Edwardson has cut his fixed income exposure it still makes up 15% of the fund.
The biggest individual security holding is in a Brazilian Government inflation-linked bond.
"It gives us a nice little hedge against inflation in the emerging markets world, which I believe could have more of a problem with inflation than developed economies," he says.
