Three managers who staged a comeback
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While Jennifer Lopez once claimed that her ‘love don’t cost a thing’, many will be arguing the exact opposite over Valentine’s day (hopefully not literally!): the average Brit is set to spend just over £40* on their other halves.
Whether it’s on dining out, sending flowers or giving chocolates, we can spend more than £1 billion* on romantic gestures in a particularly loved-up year.
But what are the other ways we could invest in our relationships? We take a look at some Valentine’s day investments.
Valentine’s Day is the second most popular day to get engaged (pipped to the post only by Christmas Day).
So Pernod Ricard, the second largest holding** in Threadneedle European Select, is a great example. It has built a unique portfolio of premium international brands – including Perrier-Jouët champagnes and Mumm, the third best-selling champagne in the world and number one in France. Dave Dudding and Mark Nichols, co-managers of the fund focus on companies with barriers to entry and pricing power.
When it comes to a girl’s best friend – the diamond – Anglo American, which owns 85% of De Beers, has been a favourite of value-style managers for some time. In January 2016, it’s share price fell to £2.21, it’s lowest level since the turn of the century, so it’s not been a stock for the feint-hearted. It is a top ten holding** in R&M UK Recovery and Schroder Income, which are two deep-value funds. The share price today is £19.26***.
If you’re not quite ready to take the plunge, a more traditional date might include a meal out and/or a trip to the cinema.
Restaurant Group, which operates more than 500 restaurants and pubs around the UK, is a top five holding** and the largest active bet in JOHCM UK Dynamic. With chains including Frankie & Benny’s, Joe’s Kitchen, Wagamama and Garfunkel’s, it caters for most tastes and won’t break the bank.
Meanwhile, Cineworld is the largest holding** in Montanaro UK Income. The only UK quoted cinema business, it listed on the London Stock Exchange in 2007. Run by Charles Montanaro, this fund invests entirely in quality medium and smaller-sized companies. Wider economic factors are ignored in the investment process.
If you are still finding love, don’t despair. You can always celebrate an ‘anti-Valentine’s day’ and go out with your friends instead.
Hollywood Bowl, with 58 bowling centres across the UK, is a fun option and a recent top contributor to performance in Man GLG UK Income. On the back of good full year results and profit performance, the stock rose substantially in December last year and the company has signalled its intention to complement the full year dividend with a special dividend.
And last, but by no means least, Rathbone Global Opportunities invests in Match Group, the online dating business that owns OK Cupid, Plenty of Fish, Match.com and Tinder. As manager James Thomson pointed out to us: “Today, more than a third of relationships start online.” Tinder was the second highest grossing non-gaming app globally in 2017 and James describes Tinder Gold, a newer premium subscription offering, as “like going to a party and being given a list of people there who would probably say yes if you asked them out.”
Swipe right, reader….
**Source: latest fund fact sheets
***12 February 2019