Alasdair McKinnon, manager of the £620m Scottish Investment trust, explains why he is ignoring the hype around FANG stocks, which have been under the spotlight recently following the fallout from the Facebook/Cambridge Analytica scandal.
Unlike many other global equity vehicles, The Scottish Investment trust's portfolio does not include any of the so-called FANGs (Facebook, Amazon, Netflix and Google). It is not that we do not see their merits - we like our YouTube clips and Prime deliveries as much anyone - it is just that as contrarian investors, we are looking for the best balance of risk and reward we can find. Today, shares in Facebook and Amazon cost more than six times as much as they did five years ago. You would need to pay 12 times more for Netflix shares and even Google costs 2.5 times more than it did in ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
