It’s often said that good investing is a matter of waiting to see the opportunity, acting decisively when the time comes and then being brave enough to hold your nerve through the storm. For Simon Mawhinney of Allan Gray, the pockets of value have finally emerged or improved in several sectors, particularly energy, which recently hit 2004 lows.

“Some of these cyclically depressed sectors operate in an environment where prices are simply not sustainable. If you overlay some sustainable assumptions, the valuations look very, very cheap and for long-term investors they represent excellent entry points.”

Here, Simon expands on his energy sector thesis and shares two of his top picks.

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Contrarian investing is not for everyone, however there can be great rewards for the patient investor who embraces Allan Gray’s approach. To stay up to date with our latest thinking, hit the follow button below or contact us for further information.


Past performance is not a reliable indicator of future results. The value of investments in the Allan Gray Australia Funds may fluctuate and when making an investment in the Funds, an investor’s capital is at risk. It is therefore important that you understand the risks involved before investing. This publication represents Allan Gray's view at the point of filming on 11 March 2020 which may have subsequently changed as facts or circumstances change. This publication is not personal financial product, tax, legal, or investment advice, and does not take into account the specific investment objectives, financial situation or individual needs of any particular person. This publication does not prohibit the Allan Gray Australia Funds from dealing in the securities mentioned before or after publication.