Walker Crips pair buy Barclays for first time in four years

Walker Crips managers Steve Bailey and Jan Luthman have re-introduced Barclays to their portfolios for the first time in nearly four years.

They have added 2% positions in the bank to the Equity Income and UK Growth portfolios after a recent setback in the share price, Bailey says.

"We have recently been buying Barclays as we view it as a real force in the global capital markets space. We think it is a leading player. There are some headwinds in the UK domestic market but we are holding it for exposure to global capital markets."

The duo last held the bank in June 2007 and the only other bank on the portfolios is HSBC, which they have held for the past six months.

Bailey says they have increased exposure to mining companies, in particular the larger coal producers, in a bid to take advantage of recent market weakness.

"The tragic consequences of the Japanese earthquake mean people are beginning to question the safety aspects of nuclear power. Lots of countries will rely more on imports of thermal coal and we expect to see dramatic price increases.

"We have already seen a hike in coking coal due to the Australian floods, so the we think thermal coal will be re-rated as well."

The duo have also boosted exposure to Rio Tinto, Xstrata and Anglo Pacific within the funds.

To make room for the new shares, Bailey and Luthman have sold down the funds' aerospace and defensive weightings over the past quarter.

Bailey says: "We felt the tightening of the laws surrounding the foreign corrupt practices related to the States will make it much harder for companies like British Aerospace to do business, particularly in some Middle Eastern countries."