Luthman: UK faces worse challenge than Europe

Walker Crips managers back global franchises across portfolios as UK's prospects look increasingly gloomy.

Walker Crips duo Steve Bailey and Jan Luthman are heavily underweight UK domestic stocks on fears the economic outlook for the country is worse than for Europe. Luthman said the UK’s prospects are “gloomy” and Bailey warned the country faced “a generation of discontent”. As a result they have skewed their £409m UK equity portfolios towards earnings in EM countries and the Far East. “What bothers us more than European sovereign debt and counterparty risk is the gloomy outlook in the UK,” Luthman said. “We just do not see where growth is going to come from.” Bailey added: “The UK ha...