** Smith & Williamson’s Tineke Frikkee upping holdings in companies exposed to UK domestic demand with a view that the rally in overseas earnings post-Brexit vote may be poised for pause.
** PM sold some shares in dollar-earner Diageo (up by a fifth since Brexit vote) last week (had increased holding post vote ); also let some Burberry holding go (top UK blue-chip performer ex-miners post vote, up ~40%)
** Bought into Marks and Spencer (eyeing H1 results Nov 8) and Debenhams post vote (switched out of Next which added to post vote ); flags DEB 6.5% div yield, strong B/S, FCF cover beats BP, Shell
Performance chart: reut.rs/2e6CJZr
** Depressed share prices/devaluation of sterling could mean more M&A in UK; PM sees BRBY, DEB, even M&S as takeover targets
** PM bought more Capita (FCF yield 10% - even if that halves still good); Consensus bearish: StarMine’s ARM model, a measure of change in analyst sentiment, shows Capita strongly out of favour with sellside, scoring 5 out of max 100
** Still holds easyJet (with ARM score of 1, worst on FTSE 100 )
** Frikkee runs S&W’s UK Equity Income Fund (RM: email@example.com)