The Mackenzie Cundill Team is finding ways to make money in stocks that have suffered from massive negative sentiment when disruptors such as Tesla, Netflix and Amazon enter a market creating the belief that these companies will win all the spoils and eventually “own” the market, thus destroying business models and stock prices. The Team has been able to take advantage of overreactions by investors to find good value in beaten-up companies such as Fiat Chrysler Automobiles (a perceived Tesla victim), 21st Century Fox (a perceived Netflix victim) and Advanced Auto Parts (a perceived Amazon victim).
No one rings a bell at the top – or when it’s time to switch investment styles. Yet the Mackenzie Cundill Team sees many signs that growth investing may be about to cede dominance to value investing.
Despite elevated stock valuations, the Mackenzie Cundill Team is finding opportunities in what it calls the “3Cs of Value”: cyclicals, compounders and cigar butts. Learn more about the 3Cs in our new Fund Insights.
According to Jonathan Norwood, Co-Head of the Mackenzie Cundill Team, one of the biggest risks for investors is to overlook the value investing style. Learn more about the benefits of value investing and Mackenzie Cundill US Class.
Jonathan Norwood and Richard Wong of the Mackenzie Cundill Team explain why they think US banks are better value now than European banks.
Richard Wong and Jonathan Norwood of the Mackenzie Cundill Team explain their thinking behind buying and selling several positions in the Cundill funds.
In their latest white paper, the Mackenzie Cundill Team argues that we are in the early days of a multi-year reversion to value. Find out more about their rationale.
The first quarter of 2018 saw heightened market volatility amidst increased interest rate and inflation expectations. Markets seem to be preoccupied with the rhetoric of trade war between the U.S. and China. It is not in anyone’s interest to get into a full-blown trade war.
The dispersion between the performance of growth and value is at its highest level in years while value is at its lowest. Trends do not continue forever but the key is to know the catalyst that could alter that trend.
The value cycle has been trading at trough valuations against growth and is showing resurgent signs of a recovery that began last spring 2016 but was interrupted this spring 2017 on fears that the Republican administration would not be able to deliver on stimulative reforms such as tax reform, infrastructure spending and deregulation.
The global economy continues to accelerate and we see fundamental macro improvements in all the major regions. The re-emergence of inflation is also taking place.