Ashby: Do not shun UK domestic market

LVAM's Graham Ashby says he is finding quality stock opportunities in the UK domestic market despite rising inflation and weak economic growth.

The head of UK equities adds many investors are shunning the UK market in favour of companies abroad, which are perceived to be better performers.

"The UK market is unfashionable, people want global equities or emerging markets but I am happy to look at domestically-focused businesses in the UK.

"There is lots of chat in the market about overseas earnings but there are some fantastic UK-focused businesses that are extremely interesting.

"You can get quality in the UK and it is at a discount."

He adds, as a bottom-up stockpicker, he does not care where earnings are coming from, whereas some managers avoid areas because of the top-down overview.

As an example, he points to a holding he has recently added to, Rightmove, which reported strong results this morning.

"It is doing exceptionally well. Revenues are up 26%, underlying operating profits are up 39% and net cash has gone from £3m to £23m. All of this is against the backdrop of a lacklustre housing market."