Graham Ashby reinstates Imperial Tobacco after three-month hiatus

Graham Ashby has re-introduced Imperial Tobacco as one of the largest holdings in his £89.1m LV= UK Equity Income fund just three months after selling out of the stock.

Ashby, the group’s head of UK equities, says the stock has lagged behind similar names in the recent rally and is now one of the cheapest consumer companies available. He has added a 3.5% holding in Imperial three months after cutting a 2% weighting in the firm in favour of British American Tobacco, and now holds equal positions in both. “Going into January, Imperial’s stocks were about £20.50 and continued to rise. It has been a real laggard, however, and they are now around £19.70,” Ashby says. “It is a very good business in terms of the operating returns it makes, so for us it l...