Value investors might thrive as the equities markets turn the corner, a senior fund manager at JO Hambro has said.
Recent falls in valuations mean that savvy investors can pick up bargain-price shares, an expert has suggested.
Clive Beagles, senior fund manager at JO Hambro, told FT Adviser that value investors, who concentrate on a stock's current price rather than its potential to grow in the future, were set to perform well in the near future. The expert said that this trend would occur as equities markets rally.
Stock markets around the world have endured tough times over recent sessions. The FTSE 100 traded at a near-five year low last week, while the S&P 500 in Chicago hit an 11-year low. Worst-affected of all was the Nikkei 225 in Tokyo, which plumbed depths not seen since 1982 earlier this month.
Fears of a global recession brought on by the credit crunch have led to these falls, as investors sell shares and move into what they see as "safer" assets, such as cash.
Speaking to the news source, Mr Beagles commented: "Value strategies have already begun to perform better than they have done previously and do tend to outperform over time."
"There are clearly some tremendous opportunities around, but most people aren't looking for anything positive… The divergence between what we consider the cheapest and the most expensive stocks is as wide as it has been for some time," he added.
