Livewire Equities

Following Andrew Clifford’s macro overview, which showed why rates would be low for a long time, Clay Smolinski, Portfolio Manager at Platinum Asset Management, takes lessons from their experiences investing in Japan to present three strategies that do well in this environment, and one that doesn’t. 1) “Growth – Japanese investors became very enthusiastic for stocks that showed growth and would often bid them up to very high valuation levels.” 2) “Dividend yields – back-testing by Credit Suisse shows that consistent superior returns could be obtained in Japan by investing in the top quintile (i.e. the top 20%) of stocks with the highest dividend yields within sectors.” 3) “Contrarian investing – Credit Suisse’s back-testing also suggests that paying attention to value and going against the crowd had substantial rewards. Buying the cheapest quintile of stocks across sectors based on the price–to-book ratio was more successful in Japan than elsewhere.” Read the full article to find which popular strategy doesn't work well: (VIEW LINK)


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