Unloved stocks the best route to UK returns

Investment week global forum report

Legal & General's Robert Churchlow believes focusing on unloved stocks and cashflow over P/E multipl...

Legal & General's Robert Churchlow believes focusing on unloved stocks and cashflow over P/E multiples is the best way to generate returns in the UK equity market. The group's head of UK equities follows several clear principles when investing based on the belief that value creation is a major driver of equity prices. "If you can successfully predict the cashflow return profile of a company, you can successfully predict the market value of a stock," he said. "Against this, there is little or no correlation between earnings growth and P/E multiples." Churchlow, who manages the L&G Gr...