Artemis backs special situations funds

Special situations funds are the lowest risk way to invest in UK equities, according to Derek Stuart of Artemis. Stuart believes the FTSE 100 will have limited earnings growth potential as a result of a backdrop of around 2% GDP growth and inflation of 2%. He said: 'Special situations stocks are the ones that are not pricing in expectations. So what is the risk? Would you rather buy a high-flying stock on a P/E of 40 times or a stock that has restructured?' Stuart runs the Artemis UK Special Situations Fund, which over 12 months to 3 February has returned -21.63% after charges in th...