European rather than UK stocks would suffer more in a no-deal Brexit, fund manager says

The shares of European firms outside of Britain would suffer more in the event of a poorly executed Brexit, a strategist told CNBC Tuesday.

Speaking to CNBC's "Squawk Box Europe," Ralph Jainz, a fund manager at Centricus Asset Management, said a negative Brexit outcome had "for sure" been underpriced by investors.

"European markets are back to where they were in September and October," he said. "We've seen a dramatic deterioration of the macro data since, and Europe as the (U.K.'s) largest trading partner will undoubtedly be negatively impacted (by a bad Brexit) — and after what has been a sensational start to the year for equity markets everywhere, for sure that risk is underpriced."

"If there was a no-deal scenario, European equities would probably suffer more than the U.K. indices," Jainz added. A no-deal Brexit is where the U.K. leaves the EU without a trade deal, or even a transition phase, in place and has to rely on WTO trading rules. It's widely expected to cause massive disruption for businesses, citizens and investors.

Jainz told CNBC the U.K. was one of the most underweighted countries in the world, meaning there was "really interesting value to be had" from shares of domestically-operating firms.

"Anything that is exposed to domestic demand in the U.K. has really been suffering," he said. "Now it really signals stock opportunities — areas like support services, where there's some real bombed out value, (are) a really good hunting ground. The U.K. today probably offers more stock-picking opportunities than any other country."

Meanwhile, Francesco Curto, co-head of research at DWS, told CNBC's "Capital Connection" Tuesday that he also saw value in the U.K. market.

"We are not paying too much attention to what's going on with Brexit, because there is so much uncertainty going on anyway at a global level that it's actually difficult to isolate Brexit from anything else," he said.

Curto added that he saw value in the U.K.'s consumer cyclical stocks, as well as in British housebuilders.

"There are some pockets of value within the U.K. market, but also we are looking in the U.S. where there are good pockets of value in the health care (and) banking sectors, as well as some of the technology names," he said.