J O Hambro's Savvides adds to UK on prospects for a recovery

J O Hambro Capital Management's Alex Savvides is adding UK domestic-focused companies in the belief the fears over the British economy have been overdone.

Savvides, who manages the £14.2m JOHCM UK Dynamic fund, says doubts over the strength of the recovery and concerns of a hung Parliament have led investors to avoid many strong domestic stocks. He believes the flight into stocks with heavy overseas earnings has created a number of valuation anomalies across the market. As a result, he has increased his holding in Ladbrokes from under 1% to 2.2% over the last three months. Savvides believes the market’s dislike of UK-reliant stocks combined with the bookmaker’s management changes could soon push the firm into his top 10 holdings. ...