‘British Airways lost us 75pc, but we’ll stand by it’


What pressures do British stocks face?

Inflation is a big worry. I think the high figures at the moment are transitory and will fade once supply issues resolve themselves. But the growth in wages looks more permanent.

Persistently high rates of inflation will lead to a rise in interest rates, which would actually benefit our stocks in the financial industry.

Banks are awash with cash, which they can use to lend out at a higher rate and make a bigger profit. Our investments in Barclays, NatWest and Standard Chartered stand to gain.

What sectors do you avoid?

We usually avoid areas such as biotechnology and pharmaceuticals, because we do not have enough expertise in that area. We also avoid investing in outsourcers within the construction industry, because it is difficult to assess the impact of wage inflation on them.

What have been your best and worst investments?

Our best was Asos, the online clothing store, which we bought at the beginning of the pandemic last year. It was an opportunity to buy into a company that we had admired but never owned. 

It recovered very well, and lockdown habits actually worked in its favour, as loungewear products have higher margins. We held it for about nine months and made about 320pc. 

Our worst was International Consolidated Airlines. We’ve lost 74pc but we still hold it because we’re confident that the company will grow now that the industry has fewer players in it.

What would you have been if not a fund manager?

I studied engineering, so I think I would have gone into that. I would have specialised in manufacturing. 

I always like to see British companies in that sector, as I think it is an example of where the UK has a very strong edge. 


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