James Sullivan, managing director of MitonOptimal, has said UK real estate is one of the most attractive areas of the market, particularly REITs where he said "share prices have overshot on the downside".
In a portfolio update, Sullivan said the 40% discounts currently on offer from real estate investment trusts (REITs) reflect an "Armageddon" scenario, which is not justified.
"We do not see that," he said. "UK REITS have the most robust balance sheets we have seen since many of them IPO'd, coupled with attractive yields.
"They face a number challenges, but the share prices have overshot on the downside."
Sullivan did highlight challenges to the asset class in the form of Brexit and interest rates rising faster than expected, but noted they were baked into the price already.
"As we all know, nothing irks the market more than uncertainty," he added. "Even the eventuality of bad news may be received positively as plans can be put in place to mitigate the pain."
Sullivan has also increased his exposure to the rest of the UK market on the Coram multi-asset funds he runs, with the weakness of sterling delivering robust earnings on a number of companies.
The managing director also remains bullish about the prospects for emerging markets, especially in Brazil and Korea.
He said the recent sell-off in Japanese and Asian equity markets was not justified considering where valuations are compared to the US.
A recent sell-off in the US spread into Asian markets with the MSCI AC Asia ex-Japan index tumbling 3.8% in a day on 10 October, while Japan's Nikkei 225 was off 3.9% and Shanghai's Composite index fell 5.2% to 2,583 points.
"Our Asia and South American themes have been frustratingly painful but we are quietly confident that collecting stock today in these regions will reap very material reward over the coming months and years.
"Being patient has not been easy when the NASDAQ has been offering bountiful reward (until now), but it is the right strategy for anyone less obsessed by monthly rankings."
Sullivan added the portfolios are currently net short the US equity market.
"It is a contrarian call but one that is right for our un-benchmarked mandate. We have instead focused our US exposure on collecting Treasury stock at the short end of the curve, exposing ourselves to a modest amount of dollars.
"The interest rate differential that is building up should lend further support to the greenback, albeit the big variable in this trade will be how the market prices sterling in the coming months," he cautioned.
MitonOptimal has around £880m assets under management across its discretionary fund management, client portfolio management and fund range.