Steer: Alternative ways to play the London boom

Tim Steer, manager of the Artemis UK Growth fund, is backing London-focused stocks to outperform in the coming months as he focuses his portfolio on UK-centric names.

Steer made a concerted move back into domestic stocks last year at the expense of overseas earners and industrials such as Aggreko, accurately calling the shift in market sentiment seen in 2013. He is continuing to play the domestic recovery as 2013 draws to a close, pointing to fundamentals that continue to diverge. “Earnings upgrades are an important determinant of performance, and we are still getting upgrades in the UK. But some overseas stocks are issuing profit warnings more than we thought,” Steer said. The manager sees London property as a particularly rich source of return...