The UK is an underappreciated knowledge-sector superpower and remains a "happy zone" for active stock-picking, according to William Hobbs, chief investment officer at Brooks Macdonald Asset Management. Hobbs argues that British equities offer a compelling but overlooked entry point into the AI revolution, driven by the country's deep research base and concentration of specialized technology firms.

The UK's university ecosystem and legacy in data science create structural advantages that global investors frequently discount. Hobbs notes that while US mega-caps dominate headlines, a layer of UK-listed companies provides critical infrastructure, software, and data services essential to AI deployment. These firms often trade at significant valuation discounts relative to American peers.

Active managers can exploit this disparity through bottom-up selection, targeting businesses with durable competitive moats in niche verticals. Brooks Macdonald's strategy emphasizes quality compounders with pricing power and recurring revenue streams tied to enterprise AI adoption. Hobbs maintains that the market's fixation on large-cap US names has created a valuation gap that patient capital can capture.