Although financial gloom is everywhere and President Trump is causing a rumpus with his 'America first' method, the UK stock market remains unfazed.

Despite a couple of wobbles last week - and more to come as Trump rattles worldwide cages - both the FTSE100 and wider FTSE All-Share indices have actually been durable.

Both are more than 13 percent greater than this time last year - and close to tape highs.

Against this background of financial uncertainty, Trump rhetoric and near-market highs, it's tough to believe that any exceptional UK financial investment opportunities for patient investors exist - so called 'healing' scenarios, where there is capacity for the share price of particular business to increase like a phoenix from the ashes.

But a band of fund managers is specialising in this contrarian type of investing: buying underestimated business in the expectation that over time the marketplace will reflect their true worth.

This undervaluation might result from bad management leading to company errors; an unfriendly financial and financial background; or larger problems in the market in which they run.

Rising like a phoenix: Buying undervalued companies in the hope that they'll eventually soar needs nerves of steel and boundless perseverance

Yet, the fund managers who purchase these shares believe the 'issues' are understandable, although it may take up to 5 years (occasionally less) for the results to be reflected in far greater share rates. Sometimes, to their discouragement, the problems prove unsolvable.

Max King spent thirty years in the City as a financial investment supervisor with the likes of J O Hambro Capital Management and Investec. He says investing for healing is high danger, needs perseverance, a disregard for agreement investment thinking - and nerves of steel.

He also believes it has ended up being crowded out by both the growth in inexpensive passive funds which track specific stock exchange indices - and the appeal of growth investing, built around the success of the huge tech stocks in the US.

Yet he insists that healing investing is far from dead.

In 2015, King states many UK recovery stocks made shareholders spectacular returns - including banks NatWest and Barclays (still recovering from the 2008 global financial crisis) and aerospace and defence giant Rolls-Royce Holdings (booming again after the effect of the 2020 pandemic lockdown). They generated respective returns for shareholders of 83, 74 and 90 per cent.

Some shares, states King, have more to offer investors as they advance from healing to development. 'Recovery financiers frequently purchase too early,' he says, 'then they get tired and sell too early.'

But more importantly, he believes that new healing chances constantly present themselves, even in an increasing stock market. For brave financiers who buy shares in these recovery scenarios, outstanding returns can lie at the end of the rainbow.

With that in mind, Wealth asked 4 leading fund managers to identify the most compelling UK healing chances.

They are Ian Lance, supervisor of investment trust Temple Bar and Alex Wright who runs fund Fidelity Special Situations and trust Fidelity Special Values. These two supervisors accept the recovery investment thesis 100 percent.

Completing the quartet are Laura Foll, who with James Henderson runs the investment portfolio of trust Law Debenture, and Imran Sattar of investment trust Edinburgh.

These two managers purchase recovery stocks when the financial investment case is engaging, however only as part of more comprehensive portfolios.

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' Recovery stocks remain in our DNA,' states Lance who runs the ₤ 800 million Temple Bar with Nick Purves. 'The reasoning is simple. A company makes a strategic error - for example, a bad acquisition - and their share price gets cratered. We buy the shares and then wait for a catalyst - for instance, a change in management or service strategy - which will change the business's fortunes.

' Part of this process is speaking with the business. But as an investor, you need to be client.'

Recent success stories for Temple include Marks & Spencer which it has owned for the previous 5 years and whose shares are up 44 per cent over the past year, 91 percent over the past 5.

Fidelity's Wright states buying healing shares is what he does for a living. 'We buy unloved companies and after that hold them while they hopefully go through positive modification,' he explains.

' Typically, any healing in the share price takes between 3 and five years to come through, although sometimes, as occurred with insurance company Direct Line, the recovery can come quicker.'

Last year, Direct Line's board accepted a takeover offer from rival Aviva, valuing its shares at ₤ 2.75. As an outcome, its shares rose more than 60 percent.

Foll states recovery stocks 'are frequently big drivers of portfolio efficiency'. The very best UK ones, she states, are to be found amongst underperforming mid-cap stocks with a domestic company focus.

Sattar states Edinburgh's portfolio is 'diverse' and 'all weather' with a focus on high-quality firms - it's awash with FTSE100 stocks.

So, healing stocks are only a slivver of its assets.

' For us to purchase a recovery stock, it should be very first and foremost an excellent company.'

So, here are our investment experts' leading choices. As Lance and Wright have said, they might take a while to make decent returns - and nothing is ensured in investing, especially if Labour continues to make a pig's ear of promoting financial development.

But your persistence might be well rewarded for accepting 'healing' as part of your long-lasting financial investment portfolio.

> Search for the stocks listed below, most current efficiency, yield and more in This is Money's share centre

WINNERS IN A POSSIBLE HOME BUILDING BOOM Marshalls is the nation's leading provider of building, landscaping, and roofing items - purchasing roofing specialist Marley 3 years earlier.

Yet it has actually had a hard time to grow income against the background of 'challenging markets' - last month it said its earnings had fallen ₤ 52million to ₤ 619 million in 2024.

The share cost has gone nowhere, falling 10 and 25 percent over the past one and two years.

Yet, lower rates of interest - a 0.25 percent cut was revealed by the Ban > k of England last Thursday - and the meeting of an annual housebuilding target of 300,000 set by Chancellor Rachel Reeves may help ignite Marshalls' share price.

Law Debenture's Foll says any pick-up in housebuilding needs to lead to a demand surge for Marshalls' items, streaming through to higher revenues. 'Shareholders might delight in attractive total returns,' she says, 'although it might take a while for them to come through.' Edinburgh's Sattar also likes Marshalls although, unlike Foll who currently holds the company's shares in Law Debenture's portfolio, it is only on his 'radar'.

He says: 'Its sales volumes are still below pre-pandemic levels. If the Chancellor does her bit to re-

ignite housebuilding, then it ought to be a beneficiary as a provider of materials to new homes.'

Sattar also has an eye on contractors' merchant Travis Perkins which he has actually owned in the past. 'It has fresh management on board [a brand-new chairman and chief executive] and I have a meeting with them soon,' he says.

' From an investment point of view, it's a choices and shovels approach to gaining from any expansion in the real estate market which I choose to purchasing shares in specific housebuilders.'

Like Marshalls, Travis Perkins' shares have actually gone no place, falling by 7, 33 and 50 percent over one, 2 and 3 years.

Another recipient of a possible housebuilding boom is brick producer Ibstock. 'The company has actually big repaired costs as an outcome of heating the substantial kilns required to make bricks,' says Foll.

' Any uptick in housebuilding will increase brick production and sales, having an overstated advantage on its operating expense.'

Lower rates of interest, she includes, must likewise be a favorable for Ibstock. Although its shares are 14 per cent up over the previous year, they are up a meagre 0.3 per cent over 2 years, and down 11 and 42 percent over three and 5 years.

Fidelity's Wright has also been buying shares in 2 companies which would gain from an improvement in the real estate market - cooking area provider Howden Joinery Group and retailer DFS Furniture.

Both companies, he says, are gaining from having a hard time competitors. In Howden's case, wiki.monnaie-libre.fr competing Magnet has actually been closing display rooms, while DFS rival SCS was bought by Italy's Poltronesofa, which then closed lots of SCS stores for repair.

DFS, a Midas pick last month, has actually seen its share rate increase by 17 per cent over the past year, however is still down 41 percent over three years. Howden, a constituent of the FTSE 100, has actually made gains of 6 percent over both one and three years.

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FUND MANAGER WORTH MORE THAN ITS PARTS Temple Bar's Lance doesn't mince his words when talking about FTSE250-listed fund supervisor Abdrn. 'People are right when they explain it as a rather having a hard time fund management business,' he states.

'Yet what they typically don't realise is that it likewise owns a successful investment platform in Interactive Investor and an adviser business that, integrated, validate its market capitalisation. In result, the marketplace is putting little value on its fund management organization. '

Add in a pension fund surplus, a big multi-million-pound stake in insurance provider Phoenix - and Lance says shares in Abrdn have 'terrific recovery capacity'.

Temple Bar took a stake in the service at the tail end of last year. Lance is excited by the business's new management team which is intent on cutting costs.

Over the previous one and 3 years, the shares are down 3 and 34 per cent, respectively.

OTHER RECOVERY POSSIBILITIES Fidelity's Wright says a recovery stock tends to go through 3 distinct phases.

First, a business starts positive change (phase one, when the shares are dirt cheap). Then, the stock exchange acknowledges that modification remains in progress (phase 2, reflected by an increasing share price), and lastly the rate totally shows the changes made (stage 3 - and time to consider selling).

Among those shares he keeps in the phase one container (the most exciting from a financier viewpoint) is marketing giant WPP. Wright bought WPP last year for Special Values and .

Over one, 2 and 3 years, its shares are respectively up by 1 percent and down by 22 and 33 per cent.

'WPP's shares are low-cost due to the fact that of the hard marketing background and concerns over the possible disruptive effect of artificial intelligence (AI) on its earnings,' he says. 'But our analysis, based in part on speaking with WPP consumers, shows that AI will not interrupt its company design.'

Other healing stocks mentioned by our specialists consist of engineering huge Spirax Group. Its shares are down 21 per cent over the past year, however Edinburgh's Sattar states it is a 'brilliant UK commercial business, worldwide in reach'.

He is likewise a fan of bug control giant Rentokil Initial which has experienced repeated 'missteps' over its pricey 2022 acquisition of US business Terminix.

Sattar holds both stocks in the ₤ 1.1 billion trust.