Why we invest this way
There are three distinct characteristics within our strategy:
In an increasingly competitive market, practicing patience can give you a distinct advantage. By waiting for the right opportunity to buy, and giving an investment time for its value to develop, you may discover enormous potential for an undervalued company.
In a highly competed market, where everyone has access to the same information, we thrive by not following the crowd. As contrarians, we resist trends and uncover opportunities in areas where nobody else is looking. It puts us in a space where we face little competition, where an investor’s greatest assets are patience and independent thinking.
We seek out companies that are out of favour and wait for an opportunity to buy at a price well below their value. We study a company’s fundamentals, and then calculate what we believe to be its true value.
Our approach has worked for over 40 years.
Going against human instinct and taking a contrarian approach to investing is not for everyone. It takes practice, and commitment in your convictions. Globally, Allan Gray has managed money this way for over 40 successful years. Along the way, we are committed to refining our investment style.
Is our approach for you?
Our investment approach has outperformed the market over the long term, but it requires restraint and patience. It can mean periods of short‐term underperformance while we wait for the market to recognise the value we’ve identified in shares.
Our funds can look markedly unlike those of our peers. You’ll need to be sure that you’re comfortable holding a fund that looks and performs differently from the others in your portfolio.