This makes the UK an attractive hunting ground for smaller companies, where the rebound potential is clear.
Investors in UK smaller companies could also be in line for a boost if takeovers start increasing, investors say.
Jackson adds: “Low valuations in the UK, more stable interest rates and the wall of money in the private equity world looking for a home means we expect a strong pick-up in mergers and acquisitions in 2024.”
It’s not just UK fund managers who are gung-ho about British companies. Some global fund managers are topping up on UK holdings.
Ben Peters, manager of the £1.7bn Evenlode Global Income fund, said: “We’ve been decreasing our US exposure and investing in this side of the pond in the UK – and Europe.
“More recently, prices have become attractive in the UK market, so we’ve increased the weighting and it’s about 23pc of the portfolio now.”
While many experts are reasonably bullish about the UK markets, there’s no way of knowing what curve balls might come along and investors are exposed to the unknown.
Ready to back Britain: here’s what big investors are buying
Emma Wall, head of investment analysis and research at Hargreaves Lansdown, says: “There are some great companies in the domestic market being unfairly discounted.
“While volatility is likely to continue through 2024, on a long-term view this could be a great opportunity to pick up cheap stocks with international revenues, attractive dividends, good dividend cover and robust balance sheets.”
If you want to back companies on home soil and prefer to do your own stock picking, you could plump for some of the shares exciting fund managers at the moment.
