Orbis's Cutler shifts into cyclicals for 'explosive' value recovery

Focus on aerospace sector

The Orbis Balanced fund has shifted towards the more cyclically-oriented parts of the global equity market in anticipation of an "explosive" recovery for value, despite renewed pressure on those stocks from the coronavirus pandemic, according to manager Alec Cutler.

Cutler told Investment Week that while he managed to find some "quality names that were being jettisoned", "at the maximum point of pain" in the February and March market sell-off, his gaze then turned "towards things that are closer to the epicentre of the crisis". "Early on in the drop, we were able to put new positions on in Alibaba, Comcast and Disney," the Bermuda-based manager said of firms he sees as being "quality names… with rock-solid balance sheets". Multi-manager funds slash equity exposure to lowest level However, soon after those stocks were brought into the fold, he ...