A pairs trade in the pub sector

Matthew Partridge looks at how best to play the pub and restaurant sector with spread betting.

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The pub and restaurant sector has seen strong growth in recent years, thanks to a rise in the number of people eating out. However, there are concerns that the fall in sterling is already starting to push up food prices. At the same time, increases to the minimum wage and possible future immigration restrictions could push up staffing costs. Finally, declining beer sales and a possible economic slowdown this year could also hit demand. Still, while the outlook for the overall sector is uncertain, I see an opportunity for a pairs trade (where you go long one stock and short another).

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri