Investors are ‘still in the dark’ regarding the future direction of Tesco (LON:TSCO), and until that changes it is hard to conceive of a reason to invest in the stock, believes Richard Buxton, manager of the £1.4 billion Old Mutual UK Alpha fund.
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The latest results from TSB (LON:TSB), the bank that floated in June, make the shares a worse investment now than at the time of their IPO, according to Old Mutual Global Investors banking analyst Rob James.
Jamie Seaton, manager of the GVO UK Focus fund, which has returned 103 per cent in the past five years compared to 53 per cent for the average fund in the IMA UK All Companies sector, believes that investors should look to companies in the financial services sector to find value.
Mark Slater, whose MFM Slater Growth Fund is the absolute top performing fund out of 275 funds in the IMA UK All Companies sector over one and five years, has told What Investment that while he has made startling profits on Quindell (LON:QPP) shares, ‘in some ways I regret ever having made the investment'.
The announcement this morning that Tesco (LON:TSCO) has had to revise upwards its estimate of the level at which profits were overstated in previous years, coupled with the announcement of a steep fall in sales and profits, make Tesco shares a definite sell, according to Richard Hunter, head of equities at Hargreaves Lansdown.
Bruce Stout, manager of the £1.2 billion Murray International (LON:MYI) investment trust, believes that weaker than expected global economic data, disappointing corporate earnings and likely interest rate rises means that ‘the risks of tipping fragile economic recovery into recession loom large on the horizon'.
A new limited-life venture capital trust (VCT) from Puma aims to offer investors ‘downside protection’ by allocating capital to investments that are backed by physical assets.
Investors nursing losses from recent stock market falls and worried about further volatility might want to consider the following funds, which have a track record of preserving investors' capital in down markets.
Alex Wright, manager of the £2.7 billion Fidelity Special Situations fund alongside the Fidelity Special Values Investment Trust and the Fidelity UK Smaller Companies fund, has outlined for What Investment readers the stocks he has been buying and selling for the Special Situations fund.
Georgina Brittain, manager of the JP Morgan Mid Cap Investment Trust, which has returned 58 per cent in the two years since she became co-manager (compared with 29 per cent for the average fund in the AIC UK All Companies sector), has described for What Investment readers some of the best stocks she is currently invested in on the FTSE 250 index.
Nick Train, whose Finsbury Growth & Income Trust has returned 490 per cent compared with 252 per cent for the average fund in the AIC UK Equity Income sector since 1995, believes that investors ‘should keep buying the dips’ in the market, despite the recent falls.
Neil Woodford: The current stock market correction is 'entirely rational', but the worst may be over
High-profile fund manager Neil Woodford, who runs the absolute top-performing fund out of 89 funds in the IMA UK Equity Income sector since its launch in June, believes that the current correction in the value of the UK stock market was inevitable as investors realised that ‘the global economy faces an uncertain future’.
The decision of veteran fund manager Richard Pease to resign from Henderson Global Investors has caused analysts to downgrade their outlook for the European equity funds he previously managed.
Hargreaves Lansdown: Latest inflation data means that Bank of England 'won't even consider' an interest rate rise
Ben Bretell, senior economist at Hargreaves Lansdown, believes that this morning's fall in the rate of UK inflation means that UK interest rates will not rise until well into next year.
Wouter Volckaert, who has returned more than twice his peers since he took over as manager of the Henderson Global Trust (LON:HGL) in early February, believes that while US equity valuations have risen markedly in recent years, there is still value in the market due to the ‘economic momentum and above average company returns’ enjoyed by the current crop of listed businesses.
A glut of ‘poor-quality, highly leveraged and speculative’ corporate bonds have come to the market this year, but investors should instead focus on ‘quality, quite boring’ bonds, according to Christine Johnson, manager of the high-performing Old Mutual Corporate Bond fund.
Frazer McKersie, co-manager of the Unicorn UK Income fund, which is the absolute top-performing fund in the IMA UK Equity Income sector over two and five years, has confirmed that he has recently begun investing in utility provider Telecom Plus.