UK growth managers navigate BP spill

SECTOR WATCH

BP has been a problematic stock for most managers in the UK growth mainstream peer group.

The stock has been a key contributor to relative performance for many funds in 2010, following the drilling rig explosion in the Gulf of Mexico. The majority of S&P-rated managers, whether constrained or not, held an underweight position, which was also the case for the peer group as a whole. BP was the most widely owned stock in the sector, with approximately 75% of funds in the mainstream peer group having a holding at an average weight of just under 4%. In addition to benefitting from being underweight or holding no BP, some rated managers were able to buy shares quite aggressiv...