Our contrarian investment approach is grounded in the simple observation that people like to belong to a group or to feel part of something bigger. Humans have evolved to feel uncomfortable outwith the mainstream because, in more arduous times, a coordinated group stood a better chance of survival.

However, we believe this crowding instinct works against the best interests of an investor and that a different stance is required to profit. Accordingly, we do not attempt to follow investment fashions and instead seek investments in which we can forsee long term upside in share price performance.

We think it is crucial to ignore the emotions associated with past performance and, rather, to view each investment on its future merit. This requires lateral thinking and the willingness to adopt a contrarian point of view as both markets and company management teams have a propensity for hubris in the good times and unjustified pessimism when times are hard.

We look for opportunity driven by change. Investment returns are driven by a change in a company’s prospects and an accompanying change in perception by the crowd.