Stephanie Bothwell, co-manager of the BlackRock European Absolute Alpha fund, joins us today to discuss the current economic and market conditions in Europe. While macro narratives such as inflation and interest rates have influenced the market, there is now more dispersion between stocks and within sectors, creating a supportive environment for bottom-up stock selection. Stephanie highlights two long positions in the fund: Novo Nordisk, driven by innovation in diabetes and obesity therapies, and Royal Unibrew, a Danish drinks company which announced a deal just this week, providing a platform for organic growth.

What’s covered in this episode: 

• The dispersion between European markets
• Characteristics of a good long position in the portfolio
• The investment case for Novo Nordisk: highlighting diabetes and obesity
• The investment case for Royal Unibrew
• Characteristics of the short positions in the fund
• What sectors are currently providing a good opportunity for shorting
• How the fund factors in higher interest rates and inflation in stock selection
• Why investors should consider the fund in their portfolio

More about the fund: 

The BlackRock European Absolute Alpha fund has a fully flexible investment approach aiming to generate positive returns irrespective of market conditions. The fund's primary objectives are capital preservation and maintaining low levels of volatility. Instead of relying on complex derivatives, the fund employs a combination of long and short equity positions.

Learn more on fundcalibre.com

Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.

Learn more on fundcalibre.com

Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.