As shoppers in the UK and across the globe hit the high streets and surf the web in search of bargains this Black Friday, we’re grateful to the five investment professionals who have shared their thinking with us on where they are unearthing unloved or under-the-radar opportunities at the moment.
Multi-year Korean transformation
By Joe Bauernfreund, CEO of Asset Value Investors and portfolio manager of AVI Global Trust (AGT)
We have been steadily building our exposure to South Korea throughout 2025, capitalising on the rich array of deeply undervalued companies coupled with the government’s enforcement-based governance reforms. We believe South Korea remains in the early innings of a multi-year transformation, with the ruling political party’s supermajority control through 2028 providing an unprecedented runway for governance reform. The opportunity for fundamental-focused investors with active engagement capabilities is rich, as 68% of the KOSPI index trades below book value and 61% receives no sell-side coverage.
Amorepacific Holdings is AGT’s largest Korean portfolio position and offers many of the qualities that AVI looks for. It has significant asset backing through a large net cash position and an investment property portfolio, and its listed stake in its subsidiary, Amorepacific Corporation, accounts for about 130% of market cap. The company currently trades at its widest ever discount (-53%), and we have identified multiple levers management can pull to unlock value.
While the KOSPI has returned some +60% year-to-date, the governance reform story remains in its infancy, and directional progress appears irreversible. At the time of writing, Korea accounts for 11.6% of AGT’s NAV – well-positioned to exploit the opportunity of ‘Chaebol 2.0’.
Overlooked quality in Europe
By Ben Peters, portfolio manager of the Evenlode Global Income Fund
Many of Europe’s most reliable companies are being treated as yesterday’s stories simply because their growth rates are modest, despite these being precisely the businesses that protect capital when cycles turn. They do not rely on cheap financing or speculative demand – and advantages are structural, not seasonal. Quiet quality has not disappeared, but it has been overlooked, and for patient investors, that is exactly where enduring value can be found.
LVMH is a key example of this; it is a company that dominates global luxury through a portfolio that stretches from Louis Vuitton and Dior to Moët and Tiffany, but the stock has lost momentum as the luxury cycle cools and Chinese demand falters. It is easy to forget that LVMH has weathered similar slowdowns before, as its control over distribution, brand equity, and pricing gives it exceptional flexibility.
The management’s focus on long-term brand stewardship, rather than quarterly targets, ensures resilience when consumer sentiment dips. The market’s impatience has created the kind of valuation gap – and while luxury demand will ebb and flow, LVMH’s ability to sustain margins and expand into new categories makes it one of Europe’s most durable franchises.
UK wealth management drivers
By Ken Wotton, portfolio manager of Strategic Equity Capital plc at Gresham House
The UK wealth management sector presents an attractive opportunity for investors. It continues to undergo structural growth driven by ageing demographics and greater personal control over savings and investment, combined with increasing regulation and economies of scale driving sector consolidation.
There has also been significant M&A activity in the sector over the past few years, with US private equity having been particularly active in acquiring UK financial advice and wealth management businesses. Overall, many high-quality companies are well-positioned to benefit from these structural tailwinds and are trading at attractive valuations.
Brooks MacDonald is a key example. A leading player in the highly fragmented sector, the company has seen a share price recovery since moving to the LSE Main Market earlier this year, broadening its investor base and reflecting growing confidence in its strategic reset following the sale of its international arm. Despite this, shares remain undervalued, currently trading at around 8x EBITDA, significantly below the 12–17x multiples paid by private equity for peers such as Brewin Dolphin and Mattioli Woods. With a refreshed management team, a rapidly growing advice arm, and rising momentum across its model-portfolio and bespoke-portfolio services, there is clear scope for a re-rating as growth resumes. If that does not materialise, continuing US private-equity interest in the sector suggests Brooks could become a takeover target within the next 12–24 months.
EM and specialist opportunities
By Darius McDermott, managing director at Chelsea Financial Services
Global equities are looking expensive relative to history, making genuine bargains harder to find. But there are pockets of value if you know where to look. Emerging markets remain deeply overlooked. Years of underperformance have pushed investors elsewhere, but if the dollar continues to soften, EM could be one of the biggest beneficiaries. We are still firm believers in India for the long term, and this year’s sell-off in its stock market has created a much more attractive entry point for patient capital.
Closer to home, UK smaller companies are in the bargain bin. They have endured one of the worst periods in living memory and remain miles below their 2021 highs. This is a hated part of the market – and we like that. When capital has rushed out so aggressively, it doesn’t take much of a sentiment shift or policy clarity to spark a meaningful recovery.
We also like specialist equities. While all eyes have been on AI, areas such as healthcare and insurance have been marked down to valuations that ignore their long-term structural drivers. We have been using that to our advantage and adding to both.
Growth in sustainable solutions
By Saurabh Sharma, fund manager of the Regnan Sustainable Water and Waste Fund
We believe French-headquartered Veolia’s comprehensive capabilities across water and waste management make it uniquely positioned to provide end-to-end solutions in each segment.
In particular, the Water Technology and Hazardous Waste divisions appear underappreciated, supported by double-digit EBITDA growth and room for continued margin improvement. Veolia has also demonstrated practical capital management, keeping maintenance capex stable and targeting acquisitions in high-growth areas. Last week, Veolia announced its purchase of US hazardous-waste player Clean Earth for about €2.6bn from Enviri, making it the number two player in the US in this segment. The company intends to finance this acquisition without equity and is targeting €2bn in additional disposals.
Further, Veolia shares have underperformed their European utility peers in the last three months since Prime Minister Bayrou decided to seek a vote of confidence. We believe the adverse effects of increased French political risk and taxes are already more than priced into Veolia’s shares. Our positive view of the stock is supported by consistent earnings growth, potential for further cost savings, good dividend coverage, and a resilient, inflation-protected business mix.
