Darius McDermott: Four special situation funds to exploit Brexit discounts
UK equities look cheap compared to their global counterparts
It has now been almost three years of many opinions and very few facts, but what has become clear is that UK equities now look cheap when compared with other parts of the globe. According to Investment Association figures, last year we saw almost £4bn of outflows from the UK All Companies sector alone, a reflection of the economic uncertainty.
If we avoid a no-deal Brexit, we could see a number of opportunities across numerous sectors with financials, particularly banks and insurers, among many which could see an upturn.
As such, I wanted to look at special situations funds. Despite many of these products carrying the same name they often use completely different skillsets to produce returns for investors. Some look for recovery and turnaround stories, while others have a focus on quality and companies that can withstand any economic environment.
Here are four of my favourite special situations funds available to UK investors.