Mark Slater: why cheap UK market is a buy in 2021

TL;DR

The UK market in 2021 presents an interesting opportunity for investors due to resolving Brexit uncertainties and attractive valuations.

Transcript

hello and welcome to our latest fund manager interview joining me today is mark slater full manager of the slater growth fund mark thank you for your time today great pleasure what's your outlook for the uk market in 2021 is it gonna prove to be a better hunting ground for investors yeah i think there are two things that make it interesting um the ... Read More

Key Insights

• ❓ The UK market has been unpopular since 2016 due to Brexit and political concerns.
• ❓ The resolution of Brexit and the reduced uncertainty make the UK market more attractive for investors.
• 🌍 The market is currently cheap by international standards, presenting opportunities for investors.
• ❓ Dislocations caused by Brexit, elections, and the pandemic make the UK market appealing for stock pickers.
• 💪 The Slater Growth Fund combines a growth approach with strong value filters to optimize investment choices.
• 💪 Their strategy focuses on investing in businesses with strong growth and favorable valuations.
• 🧘 The fund is positioned between growth and value stocks, making it flexible to potential market rotations.

Questions & Answers

Q: What factors make the UK market interesting for investors in 2021?

The resolved Brexit uncertainties and cheap valuations make the UK market a compelling investment opportunity. The dislocation caused by various events also adds to its appeal.

Q: How does the Slater Growth Fund approach investing in the UK market?

The fund combines a growth approach with value filters, aiming to invest in businesses with strong growth and favorable valuations. They don't focus on hopeless businesses or companies with high valuations but no earnings.

Q: Will there be a market rotation from growth stocks to value stocks?

While there is potential for such a rotation, the Slater Growth Fund is positioned in between growth and value, with a strategy that seeks to find good businesses at reasonable prices. They are fairly neutral towards the growth versus value debate.

Q: How does the resolution of Brexit uncertainties impact investor sentiment?

The resolution of Brexit uncertainties reduces the level of uncertainty, which is something investors dislike. As a result, international and domestic flows may return to the UK equity space, boosting investor sentiment.

Summary & Key Takeaways

• The UK market has been unpopular since 2016 due to Brexit concerns and the potential threat of a Corbyn government, but these risks have now been resolved.

• The market is cheap internationally and offers investment opportunities due to the dislocation caused by Brexit, elections, and the COVID-19 pandemic.

• There is potential for a market rotation from growth stocks to value stocks, but the investment strategy of the Slater Growth Fund combines a growth approach with strong value filters.