Stick cuts ‘priced near perfection' stocks to build war chest

clock

Rathbones' Carl Stick is building a ‘war chest' of cash to use if markets correct, after reducing stakes in popular defensives including Unilever.

Stick is currently running over 10% in cash in his £462m Rathbone Income fund, near all-time highs, after reducing his exposure to some of the most sought-after companies. Cash is currently 11% of his fund, near the 12% high-point reached in March, after the manager cut back exposure to companies like Unilever and Diageo. He said such stocks were now “priced near to perfection”, with investors paying too dearly for them. “Diageo is a tremendous business, but it is now up at 17 times earnings, as is Unilever. You are paying a price which says they will continue to operate without an...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Morningstar's Kenneth Lamont: Forget AI - battery technology is the theme to watch

Morningstar's Kenneth Lamont: Forget AI - battery technology is the theme to watch

'One in every three new cars will be electric by 2030'

Kenneth Lamont
clock 23 May 2025 • 4 min read
Event Voice: Your questions answered by Aberdeen at the Best Ideas summit

Event Voice: Your questions answered by Aberdeen at the Best Ideas summit

Global infrastructure equity is a top equity pick for H2 2025, says Aberdeen’s Ross McSkimming.

Ross McSkimming, Head of Equities Investment Specialists, Developed Markets, Aberdeen Investments
clock 22 May 2025 • 4 min read
Investment Week reveals Leaders List 2025

Investment Week reveals Leaders List 2025

Honouring investment change-makers

Katrina Lloyd
clock 21 May 2025 • 3 min read
Trustpilot
Loading page