Evenlode Global Income fund disposes of Disney in favour of 2020 valuation opportunities

Structural issues compel managers to dump brand

James Baxter-Derrington
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Ben Peters of Evenlode
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Ben Peters of Evenlode

A combination of short- and long-term factors has led Evenlode Global Income to drop the world’s second largest media conglomerate, Disney, from its portfolio, along with Hugo Boss, Informa and Sabre.

Talking to Investment Week, the £822m fund's manager Ben Peters explained that the decision factored in the short-term damage caused by the closure of its parks and resorts business, "which made up 45% of operating profit last year", and long-term structural issues. "You really cannot argue with the strength of the Disney brand, of course. But thinking longer term, while they have had some good success with the rollout of their Disney+ service streaming video on demand, catalysed by the pandemic, we do wonder how much investment they are going to have to make in order to create the conte...

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