Francis Brooke has started a position in British Sky Broadcasting in his £1.2bn Trojan Income fund as he looks to build a holding in the “powerful franchise”.
Brooke bought a stake in the British satellite TV firm in May after seeing an opportunity when the company’s share price fell after BT unveiled a rival sports service. FE Analytics shows BSkyB as being down 7.25 per cent over the past three months.
The manager says: “This powerful franchise has seen its share price decline sharply in the last three months since the competitive launch of BTSport.
“Generating prodigious amounts of free cash flow and on a dividend yield of just under 4 per cent this company is as well-equipped to deal with this new threat as it has with others in the past. This is a good opportunity to build a holding in a high quality business.”
The purchase has not cause BSkyB to enter Trojan Income’s top 10, which is headed by GlaxoSmithKline, BP, Royal Dutch Shell, British American Tobacco and Severn Trent.
BSkyB can be found in the top 10s of a number of funds, including James Macpherson’s £812.3m BlackRock UK Equity fund, Nick Purves’ £701.2m SJP Equity Income fund and Crispin Odey’s £373.3m Odey Opus fund.