The most contrarian sector in the market
Part of the Allan Gray investment philosophy is, in their own words, to “resist trends and uncover opportunities in areas where nobody else is looking, which puts us in a space where we face little competition, where an investor’s greatest assets are patience and independent thinking.”
And true to form, the fund has invested heavily in the energy sector, which has underperformed the ASX300 by 10 per cent a year for ten years, as explained here by Allan Gray’s Sudhir Kissun.
In this short interview, Kissun explains why, despite investors’ concerns over the impact on oil demand from electric vehicles and stricter climate change regulations, he believes that oil prices are just too low today. He also makes the case for an ASX50 energy stock that is a key position for the fund.
Contrarian investing is not for everyone, however there can be great rewards for the patient investor who embraces Allan Gray’s approach. To find out more, hit the contact button below.
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