Value investors will win out: Maple-Brown Abbott
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.
Recommended for you
Platinum Asset Management has put its two closed-end funds under strategic review in a bid to reduce the share price discount to pre-tax NTA and maximise shareholder value.
In the latest Meet the Manager profile, Money Management speaks with Michael Skinner, founder and managing director at Blackwattle Investment Partners.
Perpetual has seen AUM rise 6 per cent in the last quarter but the departure of a longstanding JOHCM fund manager led to outflows of $2.2 billion from his strategy.
Global fixed income fund Bentham Global Opportunities has been added to several major platforms, enabling it to be accessed more easily by financial advisers.
