Financial Mail


- 6 months Return %

- 10.9 - 5.66 2.5 7.1 11.11

Rank 103 of 104 95 of 98 72 of 75 51 of 56 34 of 38

He argues that banks in particular look oversold. It owns Barclays, Standard Chartered and Royal Bank of Scotland. It is also a believer in commodity businesses which are now in far better shape than they were five years ago.

Anglo American is its second-largest share behind pharmaceut­ical business Sanofi. Italian oil business Eni and Australian miner South32 are also in its top 10. Its main tech holding is HP Inc, the hardware arm of the old Hewlett Packard. worth paying for growth, provided the company has a business model that allows it to keep reinvestin­g in its own growth.

He does not believe all shares have to revert to the mean. But Bluealpha will have a far nimbler process than Ninety One as it does not have to co-ordinate views between four geographie­s.

Pitt says Bluealpha skews away from energy, materials and financials. The fund focuses on shares with high returns on invested capital, and not on buying cheap businesses. Domino’s Pizza, Amazon and Microsoft have been winners recently. The fund uses Put options frequently to protect portfolios and exercised half of these in the first quarter. It is also keeping its powder dry with a 17% cash holding, not far off the maximum permitted 20%.

It wasn’t a perfect quarter, however, as there were disappoint­ing performanc­es from legacy media conglomera­te Viacomcbs, mobility software provider Aptiv and US cosmetics retailer Ulta Beauty.

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