Growth and value are not antonymous. This ought to be a fairly uncontroversial remark. To outperform the market, two factors must be in place: one must be willing to go against the market and one has to be right.
In the UK market this month, the opportunity set for growth investors is more challenging than usual. Valuations are high on most sensible measures. For this reason, it is even more important to invest in businesses that can compound genuine value over time. One sector we believe has been overlooked is banks. It is a sector that we see as undervalued presently as investors look too much to the past and are overly concerned about the legacy of the business when, in fact, bank balance sheets are as sound as they have been for a couple of generations. They represent good value on both an ab...
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