UK equities: Opportunities for stock pickers

The UK equity market has been a notable underperformer versus the rest of Europe. On a total return basis, the FTSE All Share has gained 2.4% versus the broader European market - up 6.6% so far this year.  A number of factors have contributed to underperformance. Firstly, there has been a preference (up until at least recently) for higher beta markets across Europe such as Spain, as investors focus on the recovery of the euroland economies. More recently, the higher component of energy and materials has negatively influenced the performance of the market led by the sell-off of underly...