Tesco lies unloved on the shelf at an 11 year low, though it still commands 29% of the UK grocery market. Markets, competitors and opinion have all declared "Jihad". Smashed in the UK by Lidl and Aldi's discount aggression, humiliated in America by store closures, rumbled in the City for dodgy accounting, its margins, dividends and reputation pretty much squeezed everywhere. (Fundsmith's Terry Smith recently showed how Tesco has juiced returns - such cynicism would never occur to members of the private equity or hedge fund world, would it? - by perennial and massive increases in debt). Even Buffett, long a fan, has eaten humble pie and is selling out. Now I hear warm words from Vitaliy Katsenelson, a fund manager from Denver Colorado. Here -telegraph style- is Vitaliy's argument: 

David Fuller's view

Here is Iain Little’s Fund Manager’s Diary.

It was not all that long ago, up until yearend 2007, actually, that Tesco was a favourite core holding of pension fund managers.  As shoppers, Mrs Fuller and I seldom went to Tesco, although it was usually cheaper for basic household items.  Its fresh foods were also cheaper, although frequently of a lower quality.  Even its luxury brand convenience meals were less healthy than what we could find at Waitrose or M&S. 

Therefore, despite the new management I felt little temptation to invest in Tesco, let alone feature it, as the share plunged.  Nevertheless, Vitaliy Katsenelson’s assessment of Tesco above is interesting.  I also know that Iain Little and his partner Bruce Albrecht are shrewd investors.  I imagine Iain will be discussing Tesco among other shares of interest at our next Markets Now seminar on Monday 10^th November, and will be interested to hear his further thoughts.  Even if the share does prove to be a bargain at today’s price, I think the bottoming out process could be lengthy, give the balance sheet problems.