He says the 2.9bn fund has always been value-driven and he does not want to buy an industrial or cyclical stock if he is not paid adequately to wait for at least a three-year timeframe.
“I think there is a lot of value in some defensive stocks as they are cheaper than they have ever been and their earnings’ outlook is not terribly impaired. Oil majors and pharmaceuticals are perfect examples. We have not seen this degree of shrinkage in the post-war period. The chance of a durable cyclical recovery from this point is extremely unlikely. I think we are making a bottom but I would not surprised if it is a protracted one.”