BUZZ-Cavendish AM digs into E&P, defence cos, Pru in selloff

** UK-focused Cavendish AM fund manager Paul Mumford goes against the crowd & snaps up shares in small E&Ps as well as blue-chip defence cos & insurer Prudential (HKSE: 2378.HK - news) to take advantage of cheaper valuations presented by market meltdown

** Shares (Berlin: DI6.BE - news) in EnQuest (LSE: ENQ.L - news) , Ithaca & Excite which, with fellow commodity stocks, among hardest hit in sell-off, bought by Mumford as recently as this morning (PM also been adding to holdings in trio in last months)

** PM on Monday bought more shares in aircraft-braking manufacturer Meggitt & larger aerospace peer Rolls-Royce (both of which are subject to M&A speculation); down 8% & 9% respectively in 4 days to Monday's close

** PM also recently (Aug 20) bought shares in insurer Prudential in the wake of forecast-beating H1 earnings; reckons stock represents "fairly good value"

** PM says given scale of Monday's sell-off sparked by China worries -- FTSE 100 down 4.7% -- he invested his own ISA money into the Cavendish Opportunities fund which he runs (stock markets have since recovered ) (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)