What we do
A different view of markets
We take a contrarian approach to global stockmarkets, which we view as irrational and ultimately inefficient.
As high-conviction investors, we refuse to follow the herd. Instead, we focus on stocks that are out of favour with mainstream investors, as we believe that these offer the greatest potential for long-term gains. This is because stocks that are popular tend to be overvalued – while out-of-favour stocks are often too cheap. We aim to exploit this inefficiency for our shareholders.
We also believe that the investment environment is inherently cyclical. There are cycles in industry fundamentals, corporate behaviour, analyst views and investor sentiment. These cycles are closely linked: when an industry’s fundamentals have been strong for some time, management teams, analysts and investors tend to be overly bullish on its future. This leads to irrational investment decisions.
Our opportunities arise at the opposite point in the cycle – when a downturn leads to excessive pessimism about a company’s prospects. This allows us to buy stocks at precisely the point when the profit opportunity is greatest.