UK long/short funds have targeted the UK food-manufacturing market as a source of several profitable short positions, including Britvic and RHM.
"It's a very competitive market. It hurts pricings and squeezes margins," says John Rosier, manager of Matrix's RM Fund.
However, the name that keeps coming up is Northern Foods, a position Resolution held going into May and currently retains. Matrix is also short Northern Foods.
"Ostensibly, you can look at these valuations and say they have a nice