It's 2022, inflation is up, interest rates are following, and the S&P/ASX 200 Index (ASX: XJO) has fallen 10% year to date. But there's a silver lining to this year's volatility for those on the hunt for ASX 200 shares.
Some fundies believe it has brought opportunities to buy some of the index's favourite stocks for decent prices.
Airlie Funds Management portfolio managers Emma Fisher and Matt Williams are on the hunt for stocks trading at reasonable prices following the market's poor performance, the Australian Financial Review (AFR) reports. Particularly, those boasting strong balance sheets.
And they've flagged three ASX 200 shares that meet the brief. Keep reading to find out which stocks have caught the fundies' attention.
3 ASX 200 shares boasting strong balance sheets
Premier Investments Limited (ASX: PMV)
Premier Investments, the company behind brands such as Just Jeans, Peter Alexander, and Jay Jays, is one such share.
It ended the first half of financial year 2022 with $400 million of net cash, having paid off all its operating debt.
The company's share price has dumped 30% year to date to trade at $21.29 at the time of writing.
ARB Corporation Limited (ASX: ARB)
The ARB share price has also struggled this year, falling 43% year to date to swap hands at $29.70.
That's despite the ASX 200 share boasting a net cash position of $52.7 million and no debt at the end of financial year 2022.
Fisher reportedly believes the four-wheel drive accessories retailer is a quality business trading at reasonable levels right now.
Medibank Private Ltd (ASX: MPL)
Medibank boasted a "strong" balance sheet and no debt at the end of financial year 2022.
The company is also well positioned to tackle inflationary impacts. Fisher commented on the business, courtesy of the AFR:
[W]e're happy to own [Medibank] still, even though it has performed well, because it's got the kicker from high interest rates in terms of its investment income, and it's a capital-lite business model. So, it shouldn't be hugely hurt by inflation.
Williams also reportedly said Medibank's latest results were among the highest quality results posted in the August earnings season.
The ASX 200 share has gained 9% year to date to trade at $3.66.
