The jaded US blue chips

US

The S&P 500 index is up 20% in 2013, highlighting the good year US investors have had so far. Somewhat surprisingly, however, some of the best known and widely owned ‘blue chips' have barely budged. In some cases, they have actually seen their share prices fall. Could this mean there is a catalyst for another move up in the index as some of the giants play catch up? Nick Ford, co-manager of the CF Miton US Opportunities fund, investigates why some of the best known US stocks have performed so poorly this year.

Coca-Cola With one of the most valuable, and well-known brands in the world, Coca-Cola has been a core consumer staple holding for fund managers for many decades. Legendary investor Warren Buffett not only has a sizeable stake, but is known to drink Cherry Coke on a regular basis. Yet Coca-Cola’s shares have barely moved so far this year (gaining a mere 2%). The problem is the company is so large now – sales were $48bn in 2012 – and it is struggling to find new avenues for growth. Sales in the second quarter of 2013 actually fell 3%, hurt by unfavourable currency translation in its o...