Value investors’ patience will be rewarded by these three stocks

Professional value investor Hugh Sergeant looks to buy strong companies that trade at a discount to their true worth. Here, he picks three that should generate strong returns over the medium to long term.

A professional investor tells us where he'd put his money. This week: Hugh Sergeant of River & Mercantile and Alliance Trust highlights three favourites

Being a value investor, seeking strong companies trading at a discount to their true worth, has been the biggest challenge of recent years. Value investing is a strategy that has been out of favour not only this year, but for more than a decade. During this period there have been occasional glimpses of light at the end of the tunnel, but rare occasions of sustained reward for adopting a value approach.

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Hugh is Head of the UK Equities team at River and Mercantile, and is a manager of the Alliance Trust investment trust