Buxton ups exposure to oil majors despite perfomance drag

Old Mutual Global Investors' head of equities Richard Buxton has begun buying back into oil companies to take advantage of the undervalued mega caps.

Buxton (pictured) has begun increasing allocation to oil stocks in his £2.3bn Old Mutual UK Alpha fund, which already has Royal Dutch Shell in its top ten holdings at 3.2%. He said: "The undervaluation of mega-cap companies has brought about a buying opportunity in oil majors; we have bought BP at below £4 per share. "I think we have become more comfortable with the oil majors and the market was cheered by Shell's results when they announced the reduction in capex." In an interview with Investment Week in December, Buxton said he was "prepared to stick with his holdings" in oil st...