With over 90% of the market tilted to growth, Is now the time to think about value?
“The one thing in stock markets that never changes is humans…human emotions. We look at the parts of the market that others don’t, won’t or can’t.” With over 90% of the market titled to growth most investors don’t even realise how biased their portfolios are. However, as an investment style, more than 100 years of data shows that value outperforms over the long-term in equity markets around the globe. Its potential recovery is the most attractive investment opportunity for patient investors in today’s equity markets.
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Nick Kirrage is the lead portfolio manager for the Schroder Global Recovery Fund launched in Australia this year. The Fund invests in companies worldwide that have classic recovery characteristics. Companies that trade on low multiples of recovered profits, but where long-term prospects are believed to be good.
Recovery investing is very different; its major strength is the disciplined focus on buying out-of-favour companies at all stages in the investment cycle. We seek to consistently apply our approach as whilst a valuation-driven philosophy will not always be in favour, over longer time periods this investment style has generated exceptional returns.
Visit our website to find out more: www.schroders.com.au/GlobalRecovery
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