Fund managers make contrarian call on beaten-up miners

Fund managers are starting to buy back into UK-listed large-cap miners, seeing valuations as too good to refuse as wider sentiment on the sector hits a "decade low".

Typically viewed as a high beta sector, large-cap miners across Europe have moved in the opposite direction to a soaring wider market since the start of 2013. Slower-than-expected Chinese growth data and talk of the end of the commodities ‘supercycle’ pushed the STOXX Europe 600 Basic Resources index into a bear market last week, with a 21% fall since the start of the year. Management changes Similarly, UK-listed miners are among the worst performers in the FTSE 100 year-to-date. But some asset managers and analysts are now expecting a turnaround in the much-maligned sector, seeing ...