Value Around the World | Mackenzie Investments

Value Around the World

Where are we finding value around the world?

Jonathan Norwood and Richard Wong of the Mackenzie Cundill Team talk about finding value opportunities among disruptors.

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Where are we finding value around the world?

Richard: Yeah, so quite often, you know, the names we look at are very much the antithesis of the FANG’s momentum type of names, where the market has discarded them, they’re trading at cheap valuation. And we sift through the wreckage so to speak and find names that are delivering profitability, have good recovery potential, and their business are not really being destroyed by these so-called disruptors, you know, the media and retail and technology. But they can continue to do well and do our work and then find the opportunity, and we’ve had a lot of success that way.

Jonathan: We’re finding value in U.S. banks, we’re finding value in energy stocks, predominantly oil. And we’re also finding value just by following the path of destruction that companies like Amazon have left in terms of the carnage in brick-and-mortar models and retail businesses, and also, sort of following that path of destruction that names like Netflix and Google have left in the traditional industries that they’ve disrupted.

We feel that there are a very good group of equities there that have sustainable earnings power that have just been left for dead.