Investment Opportunities in UK, Japan, and Korea: Insights from Alec Cutler, Orbis Global Balanced Strategy Manager
In a recent media event in London, Alec Cutler, portfolio manager of the Orbis Global Balanced Strategy, shared his insights on the investment landscape, highlighting the value he sees in the UK market, the opportunities in Japan and Korea, and the case for defence stocks. Cutler’s approach to investing is unique, with a heavy overweight in the UK, Japanese, and Korean markets, and a very underweight position in the US.
Cutler’s bullish stance on the UK market is supported by other industry experts, such as Graham Ashby of Schroders and Frédérique Carrier of RBC Wealth Management. Despite the subdued economy, there are still opportunities to be found in UK equities, according to these experts.
In addition to his UK investments, Cutler also sees potential in the Japanese and Korean markets. He highlighted the success Orbis has had with Japanese banks and their recent shift towards Korean banks. Cutler also mentioned investments in Japanese gaming giant Nintendo, showcasing his diverse investment strategy.
One area of focus for Cutler is the energy transition, particularly in upgrading infrastructure and investing in renewable energy companies. He highlighted investments in cable manufacturer Prysmian Group and UK-based Drax, a renewable energy company. Cutler also emphasized the benefits of investing in gold as an inflation hedge, with a significant portion of the fund allocated to gold and gold mining investments.
The Orbis Global Balanced Strategy, managed by Cutler, has been a top quartile performer in its sector across multiple time periods. The fund aims to balance investment returns and risk using a diversified global portfolio that includes shares of publicly-listed companies, bonds, and commodities. Some of the fund’s top holdings include iShares Physical Gold, Samsung Electronics, Taiwan Semiconductors, and Siemens Energy.
Overall, Cutler’s investment approach is grounded in a deep understanding of global markets and a willingness to explore opportunities in undervalued sectors. With a focus on the UK, Japan, and Korea, as well as investments in the energy transition and gold, Cutler’s strategy is well-positioned to capitalize on emerging trends and deliver strong returns for investors.
