Edward Bonham Carter has doubled his exposure to large-cap companies in the Jupiter Undervalued Asse...
Edward Bonham Carter has doubled his exposure to large-cap companies in the Jupiter Undervalued Assets fund over the 12 months to the end of May 2003.
Bonham Carter said the move was not based on a top-down forecast as to whether the sector will outperform but more on the fact he was able to buy a number of blue-chips on P/Es of 9-11 times.
As such, the fund has gone from being 22.3% weighted in large caps on 31 May 2002 to 47.4% on 30 May 2003, with mid-cap exposure falling from 31.3% to 23.4% and small-cap exposure reducing from 46.4% to 29.2%.
Within blue-chips, Bonham Carter has been buying banks, adding to his existing holding in the Bank of Ireland and buying into Barclays and 3i. More than 30% of the fund is in financial stocks as, in an environment of low interest rates and reasonable growth, these companies offer reasonable top-line growth and little risk of a substantial increase in bad debt positions, he said.
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