Kames' Adams buys into 'recovery play' Tesco

Kames Capital's Stephen Adams, head of UK equities and manager of the group's £398m UK Equity fund, has bought a 2% stake in retailer Tesco in anticipation of a re-rating over the coming months.

Since Tesco issued its first ever profit warning in January, following disappointing retail sales over the Christmas period, its share price has failed to recover. However, Adams holds the view growth among Tesco's competitors in the supermarket space in the UK will be a lot less than the market anticipates, so he is confident the retailer will claw back its share price losses. "The immediate outlook for Tesco is challenging, but I believe the management has a lot of self-help levers it can pull to emerge as a recovery play, so I have taken out a 2% position in the fund to get in earl...