After a volatile first half of 2023 Nick Davis, manager of the Polar Capital European ex-UK Income Fund, takes a step back and looks at the bigger picture. In the current high interest rate/high inflation environment, Nick reminds us of the importance of strong risk management and valuation discipline – skillsets often overlooked in the post-GFC era of extreme monetary policy. Nick explains how this approach helps him to find defensive, well valued companies with the ability to compound dividends and earnings steadily over the medium term and the sectors that he is currently favouring.