Star fund manager Nick Train thinks there is one key reason why leisure shares will come good once again and it’s a rather simple one… human nature!
Speaking in an update for the £7.6bn Lindsell Train Global Equity fund, Train noted the fall in tourism and leisure has been a drag on the fund – with exhibition company RELX seeing its shares fall during 14% during July.
However, there were some bright spots for the fund including PayPal and the LSE – businesses that are providing services that just ‘keep going’ regardless of social distancing.
Elsewhere, the likes of video game maker Nintendo are up 32% during the course of the year. This all sounds like a new world order has been established…
But Train doesn’t think its the end for shares in luxury shopping, exhibitions or bars. Why? Because of human nature – people will inevitably want interaction.
I have been in North Cornwall for a week in mid-July watching the beaches fill to capacity and the time-honoured rituals of teenagers congregating around trays of Heineken beer and bags of Pepsico’s Doritos. Nothing has changed. And I have no doubt that human beings both crave and will return to “real” activities and experiences. Clubbing, Disney theme parks, business deals signed at exhibitions, luxury shopping and, yes, attending live football matches will all come again. Because it is human nature.Nick Train, Co-Manager on Lindsell Train Global Equity Fund