May 2, 2017 / 4:14 PM / in 6 months

BUZZ-VIEW FROM THE BUYSIDE-RLAM's Marwood looks for "unloved domestics"

** Richard Marwood, senior fund manager of the Royal London UK Growth fund, has been adding to autocatalyst maker Johnson Matthey and holds chemicals firm Croda International , cruise operator Carnival

** Says all benefit from weaker sterling, GBP still >13% below pre-Brexit levels

** Croda makes a lot of products in UK, so has a sterling cost base but sells overseas

** Croda hit record high after reporting Q1 results last week, taking shares to +20% ytd

** Marwood has also bought Dunelm Group and Howden Joinery

** Howden Joinery plunged >18% in immediate Brexit aftermath, has recovered to trade +22% ytd; Dunelm remains -23.7% ytd

** Says that they have quite good margin structure, no problem in terms of balance sheets

** Bought a reasonably-sized position in broadcaster Sky last year, but has sold holding

** Sky up +25% since Rupert Murdoch’s Twenty-First Century Fox Inc’s $14 bln bid in Dec, but Marwood thinks there is political risk that the deal doesn’t go through

** More broadly, Marwood says not positioning fund with any kind of prediction of macroeconomic environment

** “I think trying to position your fund if you’ve got a macro view of the world at the moment is just a very dangerous thing to do,” Marwood says (RM://kit.rees.thomsonreuters.com@reuters.net)

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