I think the view of the UK has been getting distorted more and more over time.
There has also never been a year with so much outside interest in buying up UK companies. Studies even suggest the UK has been better for it as a result.
It’s a difficult one. Morrison’s and Blue Prism have been sold off this year amongst others.
Personally I think the Uk is a bit like Japan. People concentrate on the main indices and think it’s not a great investment region in general, but look under the bonnet and there are some gems.
Private equity is a difficult space. We can personally invest in private companies directly through the likes of Crowdcube, and the Enterprise Investment Scheme can make it rewarding for the risk.
Personally if looking for private equity, I would leave it to those who should be more specialised investing in that sector. Investment Trusts such as the Chrysalis Investment Trust (CHRY), or Schiehallion (MNTN/MNTC) giving exposure with the ability to buy in/trade out at a point of your choosing.
The problem with the UK indices, is there is too many old money companies that have been heavily reliant on managing their debt, expecting their revenue streams to be fairly consistent. Rolls Royce, BP, Royal Dutch. They are now starting to diversify, but don’t so much have the free cash / war chests to spend that popular US tech companies have built up over the years.
On the opposing end, check out our innovative companies - Starling Bank, the first neo bank to become profitable, Nutmeg that was bought out by JPM, or even Ceres Power, ITM Power and BritishVolt. Should probably mention Ocado and potentially Argo Blockchain as well.
There are good well run Uk companies to invest in that have lower metrics than foreign equivalents which I think is why we are starting to see much more foreign investment.