The team at Schroder invest in unglamorous, unloved stocks. The argument is simple; the lower the price, the better the return. The team believes in the process, and although this type of investing has been out of fashion they are sticking to what they do best. Going back to 1936 this is the longest period
that “value investing” has underperformed, and they believe at some point this will reverse.
Simon went on to explain that 90% of active funds are growth orientated, and when the rotation comes from growth to value everyone will be facing the wrong way. He feels now is the time to move some money across to value strategies.
In terms of Schroder, Simon believes they have the edge. It is not an easy process and they are specialists in this area. They have developed a proprietary system which contains ten years of forensic analysis which they can turn to at any time. Everything that comes up on their screen goes into this database even if they don’t invest in them…read more