J.P. Morgan's global equities specialist Jeroen Huysinga has been rotating out of mid-cap stocks and into large caps on valuation grounds.
The manager of the £201m Overseas investment trust says larger, more defensive names are now meeting his investment criteria. These include cheap valuation compared to the global peer group, the opportunity for 25% earnings growth over a six- to 18-month timeframe, and a catalyst for earnings growth. Recent additions to the fund include Carlsberg and McDonald’s. Huysinga says: “Carlsberg is looking cheap at the moment. Also, it has just taken over brewing assets in the Baltic, which had been underperforming, but is now gaining market share. “McDonald’s is a very worthy, stable busines...
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