Brand Wars: Investec's Rossouw backs Samsung but sells P&G

Investec's Clyde Rossouw has backed Samsung to confound market expectations of a slowdown in the smartphone market as he positions his Global Franchise fund for the second half.

The manager held 4.8% of his portfolio in Samsung as of end-July, and believes the stock's recent weakness is in part because the market is being "dim-witted" over its prospects. Samsung shares have fallen 15.5% year-to-date as investors fret over the continued growth potential of the wider smartphone market. Rossouw said the company has more leeway to counter structural pressures than some of its peers, particularly as its capital intensity is now falling. "The market is slightly concerned about smartphone potential in general, but we think that is slightly dim-witted," he said. "...