A US airline is among the stocks Lugano-based Mario Cribari of BlueStar Investment Managers picked as the pandemic-related concerns started easing, leaving the travel and leisure sectors among the worst hit.
The manager of the Alternative Ucits CB-Accent Lux BlueStar Absolute fund, who was awarded a + rating by Citywire in May, also bought US and Europe-based dining and lodging companies, an American firm operating in amusement parks and held some positions in a Las Vegas casino as well as some European auto stocks, and some industrial and construction companies.
Talking to Citywire Switzerland, he said: ‘We invested in them because we think they are high-quality companies with strong balance sheets, which are not going to go bankrupt and we could buy them at advantageous prices. For a time-horizon of at least 12 months, we believe it is worth it.
‘We did it as we started rebalancing the portfolio in May, after focusing on the tech, biotech, pharma and consumer staples in the months before.’
Cribari also upped the fund’s exposure to Europe, and Germany in particular, cyclical stocks and reduced his tech and biotech positions.
‘The fund should remain stable in the case of a correction, even though we don’t expect anything dramatic, thanks to direct and indirect hedges,’ Cribari said.
Cribari said that the fund follows three main approaches: protection, value, and thematic.
Among the themes selected by Cribari is one called a ‘dangerous world’, which focuses on the security – including cyber security – defence, and gold mines.
Another one, which has emerged recently, is the ‘new virus economy’, which looks at both sectors benefitting from the effects of the pandemic on people’s lives, like hygiene and e-commerce, and at those contributing to the treatment of the virus. Cribari said: ‘We call them Covid fighters.
‘We also have a sub-theme called ‘post apocalypse recovery’ which looks at all those stocks which should improve their performance as the impact of the pandemic eases.
‘When it comes to our ‘new consumer theme’ we like the Robeco Global Consumer Trends fund, which focuses on gaming, digital health and Asia luxury.’
According to the latest factsheet, the fund has a 24.2% exposure to bonds, a 22.5% exposure to equity and 7.7% of its assets allocated to alternatives.
‘When it comes to alternatives, we select Ucits managers which should help us generated alpha in a volatile environment. At the moment, we are underweight fixed income,’ Cribari said.