Managers return to supermarkets as 'silent' recovery takes hold

'Unloved' sector picking up

UK fund managers are returning to unloved food retailers on the view the sector is "silently" showing signs of a recovery after a troubling few years, which saw some of the biggest names post a series of dividend cuts.

Managers including Fidelity's Leigh Himsworth, Odey's Oliver Kelton, JO Hambro Capital Management's Clive Beagles, Schroders' Alex Breese and Old Mutual Global Investors' Stephen Message have all added to UK grocers in their portfolios this year, stating they could be a key recovery play in the coming years.   Tesco was one of the worst hit food retailers, and saw its shares plummet by as much as 55% last summer after it revealed a 54.6% drop in pre-tax profits for the first half of 2015. Sainsbury's and Morrisons also reported falls in sales in 2015, after persistent food price defla...