The Brunner investment trust has been building new positions in high-growth stocks previously deemed ‘uninvestable’ due to high valuations, while reallocating capital towards companies that have underperformed for “unjustified reasons” as the risk of a recession grows.
Marcus Morris-Eyton, portfolio manager at Allianz Global Investors' equity growth team, told Investment Week that following the derating of growth stocks this year, the managers are seeing a rising number of previously ‘uninvestable stocks' - due to the elevated valuations - reach an attractive range. One such stock is Align Technology, the American orthodontics company behind Invisalign, which is one of the global equity trust's most recent buys following the growth reversal. The managers have been making further similar trades in recent weeks, which Morris-Eyton declined to disclose. ...
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