View the article online at http://citywire.co.uk/money/article/a874641
Hedge fund Odey snaps up stake in Tesco
Citywire AAA-rated fund manager Oliver Kelton says shares in embattled supermarket 'have finally reached an attractive entry point'.
Hedge fund group Odey Asset Management has bought a stake in Tesco (TSCO), believing the prolonged slump in the embattled supermarket's shares has finally thrown up 'an attractive entry point'.
'This may well be a controversial investment,' said Oliver Kelton (pictured), manager of the €1.3 billion (£1 billion) Odey European Focus fund, in a newsletter to investors this month seen by Bloomberg.
'However, we have been following the company closely now for well over a year and believe that we have finally reached an attractive entry point.'
Shares in the supermarket have lost more than half their value over the last two years, as it struggled to fight the threat from discounters Aldi and Lidl and was hit by a £263 million accounting scandal.
Other fans of Tesco include Old Mutual Global Investors' Richard Buxton, who believes the stock represents a three to five-year turnaround story.
Buxton bought shares Tesco for the first time five years in January 2015 and said last April he believed the 'slow motion car crash' is now back on the road.
'I wonder if this is a point of maximum bearishness just as they're getting their house in order and getting on the front foot,' he said.
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