Talk of an 'everything rally' has resurfaced with good reason this year. Tech stocks are flying, the US market is back on form and even Japanese and European indices have made big gains. But ample cause for frustration remains: the FTSE 100 is up this year but once again lags the S&P 500 in sterling terms. Elsewhere, the UK’s small- and mid-cap indices are sitting on only modest gains – not much of a reprieve from a savage 2022 that saw them sustain enormous losses.
- Unconstrained and opportunistic approach
- Offers exposure to beaten up mid caps
- Good long-term returns
- Experienced team
- Lagging during a growth rally
- NAV discount less than market average
Domestic shares have had a turbulent few years but this does bring its advantages: the UK market continues to look cheap relative to its peers, and the sheer unpopularity of the FTSE can mean a handful of outstanding companies stay overlooked, as our recent feature on the market’s hidden stars illustrates. With the UK still seemingly due a recession and sentiment far from positive, the opportunities are there for contrarians who can do the research.