M&G's Felton eyes resources stocks as value ideas dry up

Mike Felton, manager of the £724m M&G UK Growth fund, is finding some of the best value investment opportunities in the resources sector, saying most of the UK market looks overvalued.

The manager (pictured) said it has been a struggle to find clear value opportunities in the UK market this year, after most sectors re-rated "quite considerably". "It would be healthy for the market to have a modest setback, and we would welcome it - it would create more interesting investment opportunities," he said. Although stocks across a number of sectors look overvalued, as earnings upgrades have not matched valuations this year, he pointed resources as one of the few sectors that still offers value. "Resources companies are some of the most obvious examples of value in the m...