Funds run by Lindsell Train, Fundsmith and Majedie increase their stakes in the posh tonics seller
Thursday 05 Mar 2020 Author: Steven Frazer

Nick Train of asset manager Lindsell Train has joined other big name investors Fundsmith and Majedie Asset Management to buy shares in Fevertree (FEVR:AIM) following recent share price weakness.

The fund manager has taken a maiden stake in the posh tonics business for his £1.7bn Finsbury Growth and Income Trust (FGT), calling it a ‘classic Lindsell Train idea’ thanks to strong brand power and global reach.

Train told investors at the annual Finsbury shareholder meeting that he had been waiting a long time for an opportunity to buy, ‘having kicked ourselves for not buying it seven years ago’.

Fevertree has seen its share price collapse by nearly two thirds over the past nine months after seeing growth slow, leading to profit warnings in November 2019 and January 2020. The stock currently trades at £12.85.

Fundsmith’s Smithson Investment Trust (SSON) added to its Fevertree stake in January this year having first invested last summer, flagging the firm’s strong market position, growth potential and ‘impressive’ returns on capital.

Majedie Asset Management, which runs investment trust Majedie Investments (MAJE), took its Fevertree stake to more than 5% of the company on 24 February.

DISCLAIMER: Editor Daniel Coatsworth owns shares in Smithson

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