Gresham House's Gulston: Differentiating the durable from the doubtful

At the height of lockdown earlier this year, investors were apprehensive about deploying capital into the market. This sentiment has sharply reversed course, with investors now increasingly concerned about missing out on the continuing rally.

However, the current market rebound should be tempered with a level of cautiousness and uncertainty. The global pandemic is still far from over, with many parts of the world experiencing an uptick in cases and renewed restrictions. The outlook remains incredibly challenging and the businesses impacted moving forward may vastly differ from those initially affected. We have systematically stuck to our process throughout the period, identifying quality, resilient businesses able to calmly navigate through the ongoing uncertainty, and maintaining our disciplined risk mitigation processes. By...