24th June 2026

Don't buy the UK, buy the right UK companies

The UK stock market is far more interesting than the headlines suggest, if you know where to look. Rathbone UK Opportunities Fund Manager Alexandra Jackson explains where she’s finding great companies.

Written by Alexandra Jackson, Fund Manager, Rathbone UK Opportunities Fund

UK markets look messy at a headline level. Politics, interest rates, geopolitics – take your pick of things to worry about. But underneath all that noise, a really interesting divergence is happening: valuations are low, company debts are relatively low, and M&A activity continues to boom. The value of UK takeovers surged in 2025 and so far this year, even as the number of deals has fallen back. Foreign-led deal values have hit record levels as overseas buyers – particularly from the US – recognise what domestic investors have been slow to see: many UK-listed companies are world-class businesses trading at a discount.

So this is emphatically not a market to buy with your eyes closed. It's a market where selectivity really matters. The opportunity is real, but it's not about buying ‘the UK’, it's about picking the right UK-listed companies.

We're focusing our stock selection on three areas: industrials linked to AI, idiosyncratic growth companies, and sectors with long-term tailwinds. We're more cautious on interest-rate-sensitive businesses, such as housebuilders and consumer discretionary companies, where real pressure on household incomes is still a risk.

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