Fidelity's Wright: Four UK contrarian calls for 2014

High valuations have made many wary of the UK market, but Alex Wright, manager of the Fidelity Special Situations fund, insists there are still plenty of unloved opportunities.

Being a contrarian, I have become a little more cautious following the strong market rally. The FTSE 250 and FTSE Small Cap indices are now trading at premiums to their 15-year price to earnings multiple averages. The FTSE 100, on the other hand, still looks cheap compared to historical averages (see chart). This has proved a fertile space for idea generation recently. 1 SSE One interesting investment idea we have come across in the FTSE 100 recently is SSE. Market sentiment towards this UK power company has deteriorated considerably over recent months and we have used the opportuni...