The stockpicker reiterated earlier claims that the rise in inflation in developed economies would focus attention on the infrastructure sector.
He said the team has been adding to its holding in Ashtead, the UK-based industrial rental firm with a major subsidiary in the US – plant-hire firm Sunbelt Rentals.
“Not only would the sector benefit from extra infrastructure spend, but there has been a secular change in the USA regarding plant hire,” Thomas said.
“In the USA in 2000, rental market share was only 20%. Today it is 55% and ownership 45%. In the UK, plant hire is more mature at 75% of the market.”
Former accountant Thomas has run the £3.7bn Axa Framlington UK Select Opportunities fund for 15 years.
He said in addition to reflation and the plant-hire trend, Ashtead may also benefit from the election of Donald Trump as president of the US.
Trump is expected to implement a range of tax cuts and stimulus measures for US-based businesses in the coming months.
“With $2.9bn of rental revenue and $1.1bn of earnings before interest, tax and amortisation from 546 US locations, [Sunbelt Rentals] is second to market leader United Rentals,” Thomas said.
“47% of revenue is from construction and the balance from non-construction, such as general buildings maintenance, special and outside events, municipalities and emergency responses, such as hurricanes.”
