Kames' Griffiths: Why I cut my short position in Tesco

Kames Capital's David Griffiths and David Pringle have removed their short position in UK food retail on the UK Equity Absolute Return fund, as the prospects for supermarkets like Tesco look more positive.

Griffiths (pictured) said although the short UK food retail theme contributed to performance in the third quarter, there is limited downside left. "We had the short food retail position on for the whole year, since before Tesco issued its profit warning, and we now feel some of the companies, Tesco in particular, have some self-help levers they can pull," he said. "We were short a number of food retailers and their suppliers but we felt there was less downside in the sector. Over the next three to four years, trading will continue to be difficult for these firms, but I think the valua...