AXA IM's Thomas becomes latest heavyweight to drop Tesco

Nigel Thomas, manager of the £3.2bn AXA Framlington UK Select Opportunities fund, has sold out of his position in supermarket chain Tesco for fear of ongoing problems in its UK business.

Thomas exited his position last month, weeks after the company reported its worst performance over the Christmas period for two decades, a move which sparked a 14% fall in its share price. The manager had previously been an advocate of Tesco's property portfolio and its market reach overseas, but believes the problems facing its UK business are too significant a headwind. "The holding in Tesco was sold due to continuing problems at Tesco UK," said Thomas, referring to the fall in market share that new CEO Philip Clarke is now attempting to halt. Tesco accounted for 0.75% of Thomas'...