Product category:
Investment funds
News Release from: Resolution Asset Management | Subject: Investment funds
Edited by the Insidemoneytalk Editorial
Team on 13 December 2007
Margin growth key as US managers focus
on tech, healthcare and agriculture
Resolution Asset Management's American Growth fund managers are focusing on healthcare, telecoms and utilities as they seek firms able to grow margins as well as sales.
Joint managers Alison Porter and Terry Ewing, whose £128m fund has returned top quartile growth of 9.91 per cent* over the last 12 months, believe many booming US companies are sustaining their ability to meet orders for in-demand products but failing to maintain margins at the same time Companies they believe have avoided this trap include those in the healthcare sector, where many firms - particularly manufacturers of testing, measurement and diagnostic equipment - are benefiting from the ageing US population
This article was originally published on Insidemoneytalk on 30 Mar 2007 at 8.00am (UK)
Related stories
EM set to suffer correction 'within weeks', warns Hexam
Emerging market countries are likely to suffer another major correction within weeks, according to Hexam Capital Partners fund manager Bryan Collings.
Maia Capital announces initial investments
Maia Capital, the multi-manager boutique collaboration with Resolution Asset Management has made a number of initial investments for its range of cautious, balanced and growth portfolios.
Major stocks in the portfolio include Inverness Medical, which manufactures medical diagnostic products, and Hologic, a digital mammography specialist currently in the process of merging with Cytyc Corporation in a deal that will create the world's largest female healthcare company.
The managers are also overweight agricultural companies such as Monsanto and Agco, which owns Massey Ferguson Tractors.
Ewing and Porter point out that US farmers are currently enjoying a boom as rocketing Global demand for wheat and corn continues to boost their profitability.
Other overweights include aerospace and utilities, which Porter and Ewing believes offers a vehicle for investment in alternative energy strategies.
The fund remains concentrated on internationally focussed companies and in particular on global brands such as McDonalds and Nike.
The managers expect this international focus will be reviewed in the New Year as they expect the US economy to rebound in 2008.
Ewing says: "The key at the moment is to be nimble and pragmatic.
We have managed to avoid the worst financials but we would like to see banks post further write-offs so the market can digest the news.
The US is a very broad market and there are always franchises growing and executing well.
Finding 60 or 70 stocks that we have real confidence in is not a problem.".
• Resolution Asset Management: contact details and other news
• Email this article to a colleague
• Insidemoneytalk Home Page
