Here you will find a series of videos featuring renowned contrarian/value investor Alastair Mundy. In his own unique style, Alastair provides an honest and refreshing perspective on what it means to be a value investor in today’s challenging and unpredictable environment. As well as sharing his views on the current macro environment, he explains some of the latest investment themes running through his portfolios.
This series of videos was recorded in London at the final event in a roadshow that saw Alastair and the Investec Asset Management UK Client Group present at 23 venues throughout the UK.
Currently, Value investing is not in vogue. As an investment style however, it has been successful across many equity markets over many years.
As the authorities continue to struggle to find growth, what might happen in a recession?
In fact, they have rarely been so expensive and long-term returns from buying at such levels have been poor.
Because of its long-term underperformance and significant negative sentiment towards its economy, we believe Japanese equities are something of a forgotten market.
Investors badly burnt in the last bear market seem reluctant to revisit the sector, providing an interesting backdrop against which to consider investing in banks.
The amount of expenditure on the stock of housing in the UK appears anomalously low. Ultimately we believe more UK houses will be extended and converted.
As value investors we focus on out-of-favour stocks, and although opportunities are scarce, they are out there.
Find out more about the Value investment capability at Investec Asset Management
Each of the funds within our Value investment capability aims for long-term capital growth using a value-driven, or contrarian approach. The contrarian approach seeks to isolate opportunities suffering from poor market sentiment and then rigorously researches them to identify our high conviction investment opportunities.
The Value team employs a disciplined investment process, making long-term investments in cheap, out-of-favour companies with appropriate balance sheets. Headed up by Alastair Mundy, the team comprises 9 investment professionals managing over £6.4 billion in assets.* By staying true to their long-term, contrarian, value investment philosophy, the Value team has risen to challenges posed by 2016 by delivering top quartile performance across a range of funds.
Cautious Managed Fund
Managed using a contrarian/value approach, it blends undervalued, out-of-favour equities with complementary assets, seeking to dampen volatility and provide attractive risk-adjusted returns.‡ The Funds simple, transparent and proven approach has successfully steered it through many challenging environments.Read more
UK Special Situations Fund
A value-driven, contrarian Fund that aims to provide investors with attractive long-term returns by investing in undervalued, out-of-favour equities with future growth potential. The Fund could be ideal to blend with other UK equity funds which adopt different investment styles, as part of an overall equity portfolio.Read more
Temple Bar Investment Trust plc
Temple Bar Investment Trust’s investment objective is to provide growth in income and capital to achieve a long term total return greater than the benchmark FTSE All-Share Index, through investment primarily in UK securities. The Company’s policy is to invest in a broad spread of securities with typically the majority of the portfolio selected from the constituents of the FTSE 350 Index.Visit website
Past performance should not be taken as a guide to the future, losses may be made.
*As at December 2016
‡ Gross of fees. This is an aim and not guaranteed
Alastair Mundy grew up in East London convinced he would be the first British Wimbledon Men’s Singles Champion since Fred Perry. For reasons best known to him he studied Actuarial Science at City University London, but after battling his way through the course decided actuarial work was far too boring. Alastair’s first job in the real world was a brief stint analysing British government debt which drove him to find a position as an equity analyst. Alastair is now Head of the Value team at Investec Asset Management having joined in 2000 from Morley Fund Management. He manages a number of funds including the Investec Cautious Managed Fund and the Investec UK Special Situations Fund. He also manages the Temple Bar Investment Trust. He is married with three children and remains committed to mastering his second serve.
Cautious Managed Fund UK Special Situations Fund Temple Bar Investment Trust plc