RWC Partners' Ian Lance and Nick Purves are simultaneously "frustrated" and "excited" at the current state of play in UK equities as they wait for their value style to come back in vogue.
The co-managers running the RWC UK Equity Income fund, which was launched in October 2018, said while certain sectors within the UK equity market were seeing "extreme bifurcation" of valuations - in many cases not witnessed since the 1990s - they were conscious of the vast risk of value traps, and warned investors of being "mindlessly contrarian". For example, Lance pointed to the hordes of retailers feeling the pressure from online players such as Amazon, but warned against "throwing the baby out with the bathwater" as some retail names still demonstrated quality characteristics, while ...
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