Three out-of-favour firms

Many of the companies professional investor Paras Anand likes are out of step - or out of favour - with the broader market. But being out of favour doesn't mean they are poor businesses. Here, he picks three firms that the market has shunned, but which should generate decent growth in the years to come.

Each week, a professional investor tells MoneyWeek where he'd put his money now. This week: Paras Anand, fund manager at the F&C European Growth & Income Fund.

We've had a broadly positive view of the markets in general over the last year or so. The main reason is our belief that the economy has the ability to recover, driven largely by corporate investment. Corporate balance sheets look robust and mergers and acquisitions activity has underpinned valuations. Towards the back end of last year, additional monetary stimulus added fuel to the fire. In these circumstances, lower-quality businesses and assets tend to get pushed fastest and furthest. While we remain positive on a medium-term view, many of the companies we like are out of step, or out of favour, with the broader market.

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