Why managers back miners

WHY BACK MINERS?

Demand for mining companies has surged in recent weeks with a number of top fund managers taking new positions in the sector.

Managers putting their weight behind miners include Jupiter Primadona Growth trust duo Richard Curling and Derek Pound. They said at the end of July they planned to take profits from their stake in BP and reinvest part of the proceeds into the mining sector, which they believe is currently undervalued. Meanwhile, Schroders’ head of UK equities Richard Buxton completely sold out of Tesco in his £1.9bn UK Alpha Plus fund and replaced the retailer with a mining IPO. He redeployed assets into a new 2% position in mining company Vallar, run by financier Nathaniel Rothschild. Fundamentals ...