Has Magnum Contra delivered?

C ontra investing draws from value investing and is regarded as a subset of the latter. It entails investing in fundamentally strong companies/sectors/themes that are presently out of favour. In other words, the fund manager takes a bet that is contrary to the popular trend in the markets and hence the name contrarian investing.

A contra fund operates on the premise that investment opportunities fall in two categories a) those that are identified by most investors and therefore already form part of their portfolios and b) those that are ignored or not yet identified. Since investment opportunities under Category A are identified by most they are overbought and are therefore trading at higher valuations. The investment opportunities in Category B are what really interest the contrarian investor. These opportunities come by way of temporary/short-term occurrences which make fundamentally strong stocks/sectors attractive investment propositions for the investor. When markets turn around, these investment opportunities tend to get valued in line with their fundamentals and investors clock a return based on the uptick.

Full Story: Has Magnum Contra delivered?

Information about elastic straps http://blog.itpatil.com/elastic-straps/