The inglorious departures from the SIF folio of Bilby and Staffline over the last two weeks have drastically reduced the fund’s exposure to UK-focused cyclical businesses.
Still left in the fund are car dealership group Lookers and brick maker Michelmersh Brick Holdings. Arguably, packaging group Macfarlane shares some exposure to the UK cycle as well.
Against this backdrop, I’m forced to again consider whether to add building services contractor T Clarke (LON:CTO) to the folio. This highly-regarded small cap is still the top-ranked eligible stock in my Stock in Focus screen results. It’s also highly-rated by Stockopedia’s algorithms:
I first considered T Clarke a few weeks ago but opted to add emerging market asset manager Ashmore instead to improve my diversification. My exposure to UK cyclical stocks is now much lower, so I feel that I should now make a more committed decision about T Clarke.
Sector backdrop is mixed
Let’s start with a look at the wider Construction amp; Engineering sector to which T Clarke belongs.
According to the Stockopedia stats, companies in this sector trade on a median…
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