Standard Life Investment’s Thomas Moore, who also spoke at Wednesday’s event, has similarly struggled to beat the benchmark given the unsettling macro events of last year.
His Standard Life Equity Income Trust only returned 15.6% within the last year versus the UK Equity Income sector’s 22%.
However, Moore anticipates a shift in the economic environment that will favour stock selection over macro investing.
“I think we’re coming back into a period of micro analysis and we’re shifting away from the macro,” said Moore.
“Despite the minority government, despite their being lots of political uncertainty, actually the last two weeks have been perfectly OK from a stock picker’s perspective. The environment is pretty conducive for those people willing to put the money to work in high conviction stock ideas.”
One of the stocks Thomas has the greatest conviction in currently is his top three holding, Rightmove, which saw its share price drop from £42 to £32 the day after the Brexit vote.
He has also indulged in the reflation trade, recently buying more Ashtead Group, which has 19% of its plant hires in the US, and BBA Aviation.
There are certain companies, like the airlines and holiday companies, that he wouldn’t touch with a barge pole.
“I don’t know how many holiday companies I’ve seen go bust since 1979,” he joked.
“The market rotates around itself,” he continued. “You have to play some of those cycles but you can’t predict the stock market so I don’t try.”
