The Investec Contrarian mindset aims to understand why conventional wisdom might be wrong. Our Contrarian approach to investing is based on the belief that the most predictable behavioural response of investors is their over-reaction to negative news. We therefore purchase shares in companies when sentiment towards them is very poor, and valuation appears cheap. Average holding periods are long, and sell triggers typically arise when there has been a fundamental profit improvement and/or a re-evaluation of the long-term prospects for the company. By approaching stocks for our Contrarian portfolios in this manner, we can focus on the positive aspects in the belief that many of the negatives are already discounted in the share price.

The unique combination of investment team, mindset, management of information, timing of purchases, holding period and the ability to avoid value trap stock characteristics sets our investment strategy apart. The Contrarian investment approach at Investec has a 30 year track record through our UK Special Situations strategy, which has been managed by the same manager for over ten years. The process is also applied across two successful global strategies – Global Contrarian and Global Franchise, plus to a South African Contrarian Equity strategy and a South African Cautious Managed strategy.