LONDON (Reuters) - Veteran UK investor Neil Woodford’s 10 billion pound ($12.97 billion) equity income fund has sold its stake in British American Tobacco (BATS.L) after strong performance, although it has kept its stake in Imperial Brands (IMB.L), the fund said.
“We have recently disposed of the holding at over 50 pounds per share,” the fund said in a blog published on Friday, adding that tobacco has been the best performing sector in the UK stock market in the last 20 years.
The fund was keeping its position in Imperial Brands as it said it remains undervalued, while “the valuation opportunity elsewhere in the sector has largely played out”.
The fund said its portfolio overall “reflects our caution on the global economic outlook and our growing confidence in the prospects of the UK economy”.
Reporting by Carolyn Cohn; editing by Maiya Keidan