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Value investing in Nigeria
2017-08-23by Nick Ndiritu of Allan Gray
Active managers in Africa and frontier markets have to counter the perceived higher-risk of investing in volatile markets prone to political and economic uncertainty. In response, most investors gravitate to growth strategies, pursuing markets or sectors with attractive GDP growth prospects and predictable policy makers. Inevitably, when investors flock to the preferred country or sector, the top-rated companies command a premium valuation, often justified as buying 'growth at a reasonable price'.

In contrast, value investors hardly have compelling narratives to justify why they are seeking out the least popular markets and acting with conviction when loading up on beaten-down value stocks. The risk of appearing stupid increases as market prices are trending downwards and there is no shortage of ‘cheap for a reason' arguments. Despite the rigorous analysis, a value manager's judgment and conviction is tested when the strategy underperforms. The prospect of client withdrawals is a reality check.

Find Full Original Article Here

Ndiritu,N (August 2017)
Allan Gray Management Company
Allan Gray Money Market Fund Allan Gray-Orbis Global Optimal FoF Allan Gray Equity Fund
Allan Gray Stable Fund Allan Gray Bond Fund Allan Gray Balanced Fund

Value investing in Nigeria
2017-08-23by Nick Ndiritu of Allan Gray
Active managers in Africa and frontier markets have to counter the perceived higher-risk of investing in volatile markets prone to political and economic uncertainty. In response, most investors gravitate to growth strategies, pursuing markets or sectors with attractive GDP growth prospects and predictable policy makers. Inevitably, when investors flock to the preferred country or sector, the top-rated companies command a premium valuation, often justified as buying 'growth at a reasonable price'.

In contrast, value investors hardly have compelling narratives to justify why they are seeking out the least popular markets and acting with conviction when loading up on beaten-down value stocks. The risk of appearing stupid increases as market prices are trending downwards and there is no shortage of ‘cheap for a reason' arguments. Despite the rigorous analysis, a value manager's judgment and conviction is tested when the strategy underperforms. The prospect of client withdrawals is a reality check.

Find Full Original Article Here

Ndiritu,N (August 2017)
Allan Gray Management Company
Allan Gray Money Market Fund
Allan Gray-Orbis Global Optimal FoF
Allan Gray Equity Fund
Allan Gray Stable Fund
Allan Gray Bond Fund

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