Sevior: Time to put cash to work

John Sevior, Founder & Portfolio Manager at Airlie Funds Management, says valuations among the companies he'd like to buy have begun to come down far enough to warrant him exiting the cash position which he has maintained at this level for the best part of the last 12 months. "We're more on the front foot now in terms of putting our cash to work than we have been in more than 10 months," he said, adding that Airlie could be fully invested by the end of the year should the opportunities arise as he expected. He highlighted Dulux as a company he'd like to own more of, should its valuation come down further. Dulux shares currently trade at a 19.3 times forward price earnings multiple, well above its 13.3 times peer group average. Mr Sevior conceded his firm's funds have remained in a holding pattern for the best part of the last year as the so-called momentum trade had continued to drive valuations in stocks higher. (VIEW LINK) (subscription required)


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