The manager exited his position in US consumer healthcare company Mead Johnson during October. The stock, which accounted for 2.5% of the portfolio in September, had been in the fund’s top-ten since May this year.
Mead Johnson third-quarter earnings report showed net sales as falling 1% to $921.3m. The company reported subdued demand in North America, caused in part by unfounded media reports in December 2011 alleging product contamination, and lower sales in China.
Tinker said: “We sold Mead Johnson after it missed earnings estimates and indicated slower demand, not only in China, but in the US, where they had previously indicated a pick-up.”
The manager also sold CBS in October after the US broadcaster hit its price target and the presidential election catalyst came to an end. Profits were also taken in US aircraft part maker Transdigm.
Furthermore, the fund restarted a position in US alternatives asset manager Blackstone after the company “addressed cost concerns in their investor day”.
As a result of the moves, the Axa Framlington Global Opportunities Fund’s allocation to the US stood at 55.4% at the end of October. This is down from 60.5% in September and close to 65% over the summer.
“We are focusing on quality growth companies with a strong valuation discipline and, provided they are executing on their strategy, we would look to add opportunistically to holdings if any are hit hard by market volatility,” Tinker added in the fund’s most recent factsheet.
