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Adrian Frost: BP must shrink to boost growth prospects

Artemis fund manager Adrian Frost has called for companies like BP to shrink their assets to improve growth prospects.

Frost says that even on a 20 year view the share price had not done very well and highlighted the success of some of the asset sales following the disaster.

He says: “The premium achieved on some of those sales were 30 per cent to 40 per cent over analyst valuations. I look at BP’s discount to net asset value, at around 40 per cent, and ask whether the share price will get close to NAV again. I would say the answer is no”.

Frost adds: “I like to see big companies shrinking so that what they have left will grow a bit faster. Plenty of companies have a market share as high as they get. If I was to choose sectors that should shrink, it would be consumer goods and pharmas.”



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