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

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...