Value investors will win out: Maple-Brown Abbott

Value/value-investing/Maple-Brown-Abbott/

8 August 2022
| By Liam Cormican |
image
image
expand image

Stagflation fears and the end of easy money have already resulted in the de-rating of many high-flying stocks but it is likely there is still further to go which should favour value investors.

Dougal Maple-Brown, head of Australian value equities at Maple-Brown Abbott, said valuations had reached extreme highs by historical levels and even though they had fallen significantly, they had a fair bit more to go.

“We are currently structuring our portfolios to take advantage of the continuing narrowing in dispersions.  We believe our value investing approach will position us to benefit from the emerging opportunities in the current market.”

Maple-Brown said that, depending on which measure was used, the highest-rated stocks were more than three standard deviations more expensive at the peak relative to their lowly rated peers, and many sectors are still above their historical levels. 

“Furthermore, after spending such a long time so far above average, it would not be surprising if the situation flipped and the highly-rated stocks traded below long-term averages for a period of time.

“The wide value dispersion in the Australian market suggest that our value style of investing will continue to deliver for our investors,” he said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

3 months 1 week ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

3 months 2 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

5 months 2 weeks ago

A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rule...

3 weeks 1 day ago

Prime Minister Anthony Albanese has confirmed who will succeed Stephen Jones to serve as the Assistant Treasurer and Financial Services Minister. ...

4 days 18 hours ago

ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors. ...

2 weeks 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
5
Plato Global Alpha A
28.83 3 y p.a(%)