Lazard's global equity income fund manager Pat Ryan has warned investors off buying tobacco companies after the rush to buy safe haven-style stocks sent valuations sky-rocketing.
Speaking to Investment Week, Ryan said he has removed the last of his exposure to the sector within his fund, with legal risks and declining volumes leaving them looking vulnerable. "They are now trading at a premium to the broad market, but people are overlooking the litigation risks in these stocks," he said. Tobacco companies remain among the largest and most popular stocks in the UK market, with British American Tobacco (BAT) appearing among the top 10 of 44% of funds in the UK Equity Income sector, according to data from FE. Globally names including Reynolds American and Altri...
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