MARKET TURBULENCE KEEPS THE OMNIS FUND MANAGERS BUSY
As we explained in this recent article, the Omnis Investment Team strongly believes active investing is more effective than passive investing because active managers can add and remove holdings in response to opportunities or threats they spot in the markets. Today’s article is ‘market turbulence keeps the Omnis fund managers busy’.
This is especially the case during periods of market turbulence, and the managers of the Omnis equity range of funds have been busy over the last few weeks, ensuring their portfolios can withstand the current market conditions and benefit from the expected economic recovery once it starts.
Before we dive into how each manager has positioned their portfolio, it is worth highlighting several recurring
themes which came up in our recent conversations:
• All managers emphasised the importance of holding financially strong, high quality companies that should still be around when the crisis fades;
• Recognising that the pace and scale of the crisis has fundamentally changed the outlook for a number of industries, our managers have shown nimbleness and humility in cutting their losses where necessary;
• The consensus among managers is the market turbulence has presented compelling investment
opportunities for long-term investors across different styles and sectors
UK All Companies Fund
The manager focused on making sure the portfolio holds financially strong companies. They bought cruise line Carnival at the start of the year as it looked set to benefit from the robust global economy, but they sold it as the travel industry came to a practical standstill due to the lockdown. They took this opportunity to invest in companies which the team has been monitoring for a while, but which had previously been considered too expensive. An example is bakery chain Greggs, a well-managed company in a good position to prosper when growth starts again.
The manager believes the crisis has unearthed some attractive long-term investment opportunities in various sectors.
To read the full update and how each manager has positioned their portfolio please click the link below:
If you would like to discuss our Omnis Update – Market Turbulence Keeps the Omnis Fund Managers Busy, please do not hesitate to contact us, we would be more than happy to speak with you: