228. There's always rain in the desert for stock-pickers

Chris Kinder, manager of the CT UK Extended Alpha fund, talks to us about being a bottom-up stock picker and finding ‘rain in the desert’; he notes that even in the most trying of financial markets, there will always be certain pockets of growth and performance that fund managers should be able to find. He comments in detail about the benefits that London Stock Exchange Group (LSEG), Aveva, SSE, and Diageo all bring to his portfolio, and – although not a thematic investor – he notes three themes in particular wherein he foresees many opportunities. He finishes by  commenting on what happens next, if we have hit peak inflation and rate rises; is it time to revisit a defensive growth strategy again?What's covered in this episode:Thoughts on previous volatile market conditions and subsequent stabilisationIdentifying mispriced opportunitiesThe themes of energy transition, onshoring and luxury goodsAre UK stocks losing favour on the global stage?How traditional owners of UK companies are giving way to a new cohortRealised and unrealised potential in London Stock Exchange Group, Aveva, and SSEWhitbread’s competitive advantage in the current environmentFeeling a lot more constructive about the longs and the shorts!More about the fund:CT UK Extended Alpha invests primarily in large UK companies, but with an unusual approach. As the name suggests, the manager aims to extend investors’ potential returns by buying stocks he expects to do well and also looking to make money on stocks he expects to do badly (shorting). So far, this strategy has proven very successful and the fund has impressively beaten its peers and the UK stock market under the manager’s tenure.Learn more on fundcalibre.comPlease remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.Learn more on fundcalibre.comPlease remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.