Kathleen Hunter, investment specialist director at Baillie Gifford argues that when it comes to UK equities, LGPS investors can benefit from looking beyond the negative headlines.
It’s fair to say that the UK market is no stranger to negative headlines but are investors perhaps missing a trick? A closer look at the figures reveals that UK-listed companies are trading at a notable discount to global peers, creating an attractive hunting ground for active stock pickers. However, stock selection is still key because there is a wide dispersion in the growth outlook for British businesses.
An attractive hunting ground
UK equities are trading at a notable discount to global peers, the biggest mark-down we have seen in our working lives. This has created a very attractive hunting ground for active stock pickers. For example, when we look at UK-listed companies, their valuations are now trading at around a 35 per cent discount to…
