Interactive Investor

Nick Train calls for patience as four share favourites slump

15th March 2021 15:14

Tom Bailey from interactive investor

The star fund manager has asked his investors to be patient.

Star fund manager Nick Train has asked his investors to be patient, following share price falls for some of his favourite holdings.

In a monthly update for his Lindsell Train UK Equity fund, Train noted that four of his portfolio’s big holdings suffered large share price falls: Hargreaves Lansdown (LSE:HL.), Heineken (EURONEXT:HEIA), RELX (LSE:REL) and Unilever (LSE:ULVR). All reported trading results in February.

These four shares equal around a third of the entire portfolio and each suffered a share price fall from between 7% and 11%.

Train noted that Heineken, Unilever and RELX were all hit hard by the Covid-19 pandemic. Meanwhile, Hargreaves Lansdown’s share price fell after placing a block of shares that were sold by its co-founder Peter Hargreaves.

According to Train, investors should remain patient. He said: “I dislike having to recommend patience to fund investors, who have had to experience this virtue many months already; but I do recommend it still.”

Train pointed out that the financial results of all four firms, despite precipitating a share price fall, had some promising aspects for long-term investors. Most notably, he said, all four company’s dividend payments look positive.

Train also pointed to some companies in the fund that had performed well lately. He noted that Burberry (LSE:BRBY) gained 6% in February and is now up by 34% from its lows of last year. “To us, Burberry still looks like an excellent way to participate in wealth creation and recovery in consumer spend, especially in Asia.”

Meanwhile, Train noted, Daily Mail & General Trust (LSE:DMGT) was up 17% in February. Train put this down to the digital growth businesses that are part of the company, notably the Cazoo brand.

Manchester United’s (NYSE:MANU) shares were also up. Train noted that the company’s share price rose “for no other reason we can see but that fans will soon be back in stadiums”. Another strong performer was LSE Group (LSE:LSEG), which gained 11%.

Over the month (to the end of February), Lindsell Train UK Equity fund lost 0.5% versus a 2% rise for the FTSE All-Share Index.

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