Five of the Best: Peripheral stocks investors are too scared to touch

Niall Gallagher, European equities manager at GAM, has found value in unloved peripheral European equities overlooked by risk-averse investors.

The manager holds 19% in peripheral Europe in his £167m GAM Star Continental European Equity fund and 17% exposure in his £47m GAM Star European Equity fund. This includes 10% in Ireland, 4% in Spain, 3.5% in Italy, 1.5% in Portugal but zero exposure to Greece. He has made top quartile returns over the past year by investing in a combination of globally exposed and domestic European companies with strong individual growth dynamics. Gallagher previously managed BlackRock's European Dynamic fund from 2003 to 2006. "There are some real gems being overlooked in Europe. They are cheaper th...