M&G's Dobell: 'Heroic' BP has outstanding recovery potential

Manager sticks with stock

Tom Dobell, manager of the beleaguered £4.4bn M&G Recovery fund, has called his largest holding BP ‘extraordinary' and is confident the stock can bounce back over the next few years.

Dobell (pictured), who has 6.7% of his fund in BP, hailed the oil major for its "heroic" response to the oil spill disaster in 2010, saying it has been unfairly undervalued by the UK market. The business has seen its price-to-book value fall below 1.00 for the first time over the past few weeks, but Dobell is convinced his hefty allocation to the stock can still pay off. "BP is an extraordinary business. It has responded in a heroic way to the oil spill crisis and its integrity has been exploited," the manager said. "But the culture at BP has changed, it has stretched every sinew i...