We report on the use of a liquid crystalline host medium to align single-walled carbon nanotubes in an electric field using an in-plane electrode configuration. Electron microscopy reveals that the nanotubes orient in the field with a resulting increase in the DC conductivity in the field direction. Current versus voltage measurements on the composite show a nonlinear behavior, which was modelled by using single-carrier space-charge injection. The possibility of manipulating the conductivity pathways in the same sample by applying the electrical field in different (in-plane) directions has also been demonstrated. Raman spectroscopy indicates that there is an interaction between the nanotubes and the host liquid crystal molecules that goes beyond that of simple physical mixing.