Ardevora's Lang: The global value traps that could trip up investors

Unlike many other market participants, we do not see a general value rally in the near term. To us, there still remains a lot of value traps, writes Jeremy Lang, manager of the Ardevora UK Income fund.

In our view, only one area of the market is currently exhibiting severe stress - natural resources. Management language was 'excuse, excuse, excuse' - until six months ago. Recently, though, some companies have changed. Only in companies facing the most acute stress have management accepted the need for radical change - whereas management for the stronger companies, which made the least mistakes, still look to us to be in denial. Hence, despite superficial similarities, stocks such as Rio Tinto and Anglo American look completely different to us. Rio Tinto, for example, looks like a va...