Sumary of CRUX UK SPECIAL SITUATIONS FUND: We’re a buyer’s market:
- Investment fund managers are convinced that the UK stock market still provides opportunities for investors to make some serious long-term gains.
- Although the market’s bounce back over the past year from the shock of lockdown and economic disruption has been strong – the FTSE All-Share Index is up more than 24 per cent – investment experts believe there is more to come.
- Among them is Richard Penny, manager of £110million fund Crux UK Special Situations.
- He says that the UK stock market remains ‘cheap’ and could deliver annual double-digit returns over the next ten years.
- ‘In valuation terms, the UK and European stock markets are cheap while US equities look expensive.
- He says the country’s successful vaccination programme and lifting of most lockdown restrictions has created ‘outstanding opportunities’ in ‘sold-off, domestic-facing sectors such as retailers and leisure companies’.
- Penny’s UK Special Situations fund is currently spread across 60 stocks, from all parts of the UK stock market – FTSE100 listed companies through to ‘micro’ stocks.
- These are companies that Penny believes are mispriced in stock market terms and provide ‘upside’ over the coming months.