BUZZ-View from the buyside: Old Mutual's Murphy has started buying Tesco shares

** After a long period of not owning UK supermarkets, Old Mutual Global Investors' Simon Murphy started buying Tesco shares at start of the yr after meeting with CEO Dave Lewis convinced him of the potential turnaround story

** PM notes shift in management thinking at all Big Three listed UK grocers - realize they have to stop piling on space (big out-of-town stores unpopular) & have to be more serious about where they sit relative to hard discounters

** But Tesco alone holds allure for Murphy given dominant market share (29 pct of UK grocery market) -- if Tesco (Xetra: 852647 - news) turns itself around, competitive environment for Sainsbury & Morrison will remain difficult

** He notes Tesco's

** PM flags Tesco has not lost footfall; basket sizes may be smaller given discontent with ranges/price perception etc - once these issues have been addressed they will recover market share

** Murphy manages Old Mutual UK Equity Fund (long only) & Old Mutual UK Opportunities Fund (long/short); made a lot of money shorting the sector last yr but closed out shorts in autumn following dramatic share price drops

** Has built on position in Tesco since start of yr (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)