GLG's Dixon: I don't want to sound too bullish but....

GLG's new recruit Henry Dixon has said the dual combination of rotation out of fixed income and the return of M&A could drive UK equities to new highs this year.

The former manager of the Matterley Undervalued Assets fund, who recently moved to GLG to run a mirror version, said although UK equities saw double-digit returns last year, on a price to earnings basis the market remains below its 30-year average. Dixon said UK equities look particularly undervalued compared to the US, where markets have raced to set new record highs. "We do not think the re-rating story for UK equities is over," he said. "The asset allocation story and the M&A story are now working together for the first time since the later '90's, and UK equities look exceptiona...