60 seconds with Nick Kirrage on where to find value
Where are the value opportunities in equities today? Nick Kirrage explains.
Unstructured Learning Time
As value managers, we let valuation be our guide and we try to focus on the cheapest parts of the market to identify areas where history suggests we’ll make money for clients.
Today, those areas are sectors like banking and commodities; some of the most unloved and in some ways unnerving parts of the market.
They’re the complete opposite of the most expensive parts of the market; more stable areas like tobacco and staples, where people value the consistency but have bid prices up to very high levels.
When we look at some of the aspects of banking franchises for example, we think there are some high quality elements extremely well-hidden among bad news. That creates an opportunity for us to invest to generate returns for the long term