Simon Brazier, manager of the £203m Investec UK Alpha fund, has joined the debate on Tesco, arguing the supermarket giant fails to meet his key criteria for investment.
The manager, who joined Investec last November from Threadneedle, said effective capital allocation by companies was a major factor in his stockpicking decision-making process. Speaking at the Fidelity FundsNetwork Investment Forum, Brazier highlighted Rio Tinto, which spent $38bn acquiring aluminium firm Alcan at a 65% premium, and Tesco as two companies which scored poorly in this area. Loss leader: Ten funds backing a Tesco turnaround "Terry Leahy[former CEO] took cashflow and invested in more space. Then when Dave Lewis took over he had to write down £4.3bn in property which wa...
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