$2 billion manager turns off the beer tap

Financial Standard writes about PM Capital's global strategy selling out of its beer investments:

"Brewing company valuations shot up as a wave of consolidations swept through the industry, starting in 2004. PM Capital thinks the valuations are now at a level where companies need "very strong earnings growth" to satisfy market expectations.

The original investment theme was simple. We observed there were premium beer brands emerging which would allow for industry consolidation and a positive pricing environment. This story has now largely played out," PM Capital global portfolio manager Paul Moore said in recent quarterly report.

Over a course of 14 years, PM Capital invested in 16 beer stocks including and Carlsberg, Asahi Breweries, SAB Miller, and Heineken which was the last to be unloaded. It bought into Budweiser producer Anheuser-Busch Inbev at $20 a share, eleven years later the price rose to about $100 a share - not counting dividends."