Merchant West Sanlam Collective Investments Balanced Plus Fund on Big Yellow Group plc
Thesis
Big Yellow Group, whose London Stock Exchange ticker is BYG, was retained even as the fund significantly reduced its broader global property exposure. London Stock Exchange The managers argue that property-sector risk and return are less attractive at current valuations and growth prospects, but they make an exception for Big Yellow because they regard it as significantly undervalued and well run. Its retention therefore represents a selective value position inside a sector the fund otherwise cut back. P(1) Merchant West SCI Balanced…
“We have retained Big Yellow as we believe it to be a significantly undervalued and well-run company.”
Key risks
- The fund is cautious on the broader global property sector's risk and return at current valuations and growth prospects