City Financial fund manager Leigh Himsworth is not preparing for a recovery in the UK economy any time soon as he makes several changes to his top 10 holdings.
Himsworth, who manages the £41m City Financial UK Select Opportunities fund, has sold off media company Perform, which was the fund’s top holding with a 2.5 per cent weighting.
Himsworth says: “They quite simply got too expensive. We are constantly cutting things that do well. We also sold half our holding of PayPoint [seventh top holding at 2.1 per cent].”
Additionally, Himsworth is in the process of selling the fund’s stake in National Express, which is the fund’s fifth top holding at a 2.2 per cent share, attributing this to an attractive raise in share price as the stock was originally purchased for £2.
Himsworth, who has also introduced Kentz, Optimal Payments and Entertainment One into the fund’s top ten holdings, denies that this fund repositioning is in preparation for an oncoming economic recovery.
Himsworth says: “I am not really structuring the portfolio for a recovery because, while I think the worst is behind us, I think the outlook is extremely tough.
”I think the focus on monetary policy is wrong. I do not think that constant stimulus of monetary policy works in the world we are in but the authorities seem hell-bent on that path. For me I think the authorities are a bit clueless.”