Investec's Mundy: Mega-cap names are now cheapest stocks in the UK

Shell and HSBC are favourite ideas in £2.7bn Investec fund as gains lag wider market.

Investec Asset Management’s highly-rated stockpicker Alastair Mundy (pictured) has said mega caps such as Royal Dutch Shell are now the most attractively valued stocks in the UK market. The manager of the £2.7bn Investec Cautious Managed fund said the difference in values across indices in the UK has left some areas – such as the FTSE 250 – trading on too high a price compared to others. “We do not think the difference in valuations between the FTSE 100 and FTSE 250 is justifiable at the moment,” he said. “The better value seems to be at the extreme end of the market-cap scale, wit...