175. The dominance of growth companies is coming to an end

Alexandra Jackson, manager of Rathbone UK Opportunities, tells us why the dominance of growth companies may be coming to an end and a more balanced approach is required in today’s environment. She also tells us which companies she has held on to, which she has sold and which she is buying. The outlook for banks is discussed and why consumers will spend money on services rather than goods this year. The conversation ends with the prospects for IPOs and whether M&A activity will continue in 2022.
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Rathbone UK Opportunities is a flexible fund targeting quality growth businesses. The manager looks to take advantage of cheap UK valuations, but avoids the ex-growth, large-cap dinosaurs. She combines structural winners with a strong core of high-quality compounders and the final portfolio consists of around 50 to 60 holdings, with a bias to medium-sized companies.

What’s covered in this podcast:

  • Why the dominance of growth companies may be coming to an end
  • Why a more balanced approach is called for in today’s environment
  • The names the manager is sticking with
  • The companies she has sold
  • The new names she is adding to the portfolio
  • Why banks may not do as well as people think in a rising interest rate environment
  • How she manages liquidity
  • Why consumers will move from spending money on ‘stuff’ to spending money on services
  • If we can expect more IPOs this year
  • Why M&A activity may remain strong in 2022
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