5 defence stocks to arm your portfolio

Defence stocks have been in the spotlight for more than a year owing to geopolitical trends predating the Ukraine war and low valuations. Alec Cutler, portfolio manager of the Orbis Global Balanced and Cautious Funds, presents the bullish case.

Fighter pilot
Saab’s Gripen fighter jet is cheaper than Lockheed’s F-35
(Image credit: © Saab AB)

Defence stocks are not generally considered to be "defensive stocks."

Investment professionals will usually define defensive stocks as those with steady and predictable earnings, competitive advantages that prevent rivals gaining a foothold in their sector, a strong balance sheet and a relatively stable share price. But in reality, what’s considered “defensive” is whatever held up best in the last market sell-off.

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Alec Cutler joined Orbis Investment in 2004. Based in Bermuda, he leads the multi-asset team, is one of the portfolio managers for the Orbis Global Balanced Strategy, and has overall responsibility for the strategy. He previously worked for ten years at Brandywine Asset Management LLC managing the Relative Value strategy, co-managing the Large Cap Value area and co-managing the firm as a member of the executive committee.

Alec holds a Bachelor of Science degree in naval architecture from the United States Naval Academy, a Master of Business Administration from the Wharton School of the University of Pennsylvania, and is a Chartered Financial Analyst.