Simon Edelsten quoted in Trustnet’s ‘Three resilient UK multinationals global managers are excited about’

Simon Edelsten, investment manager at Goshawk Asset Management, agreed that certain UK stocks are “world-class solutions” in areas such as defence that are difficult to find anywhere else.

For a prime example of this, he pointed to Rolls-Royce. Since 2020, the stock has surged 1225% in share price, which he partially attributed to the new management team and a recovery in air travel after the pandemic, increasing demand for its plane engines.

But Rolls-Royce has much further to run, making it compelling for even more pessimistic global managers, according to Edelsten.

Partially, it remains attractive because it is one of the major European defence companies, with the UK “clearly a supplier of increased European defence spending”. The ongoing international conflicts and pledges to increase defence spending from many countries have all been supportive for Rolls-Royce and have made it one of the top stocks in the FTSE 100 this year.

Additionally, it has potential in the future of energy provision, Edelsten said. The nuclear power plants they use for submarines are often repurposed for mini nuclear reactors, which “seem likely to play a role in future power grids” when renewables are less productive.

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