UK plc: Failure to invest not an option

Back 'pro-active' companies

clock • 2 min read

European fund managers have responded to recent gyrations in global stockmarkets by pushing weightings in defensive sectors to 40-year highs, writes, Vishal Bhatia, manager of the £338m JOHCM UK Growth fund.

This herding into perceived defensive assets is symptomatic of a short-termist stockmarket dominated by risk aversion, high frequency trading, and momentum investing. Admittedly, it is hard to think about the long term when share prices are so volatile and when fears of global recession are mounting, but periods of indiscriminate selling of stocks irrespective of their fundamentals do present an opportunity. Growth investors should focus on companies that invest through the economic cycle to build and deepen their structural advantages. This means identifying companies that have th...

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