'Value dislocations' open up investment opportunities

'Value dislocations' open up investment opportunities

Investors should focus on the identification of value dislocations if they are to source growth in the current investment environment, says Wingate Asset Management.


Chad Padowitz, Wingate Asset Management chief investment officer, said patient investors will be rewarded for seeking out dislocations between market valuations and company fundamentals.

“Indeed, a real valuation dislocation is evident within equity markets currently, and this provides investment opportunities for global equities managers if they take a contrarian approach,” he said.

Mr Padowitz argued that embracing volatility will lead to opportunities for long-term investors.

“When you look through the cycle, there are companies that are trading at significantly depressed valuations,” he stated.

“A share’s intrinsic value and the degree it differs from the market price is ultimately sentiment-driven. Long-term investors may consider seeking investment opportunities that go against prevailing market trends rather than always following what others are doing.

“Identifying dislocations between market valuations and company fundamentals can create real opportunities for patient investors in global equities,” Mr Padowitz reiterated.

Mr Padowitz noted the importance of adopting an active strategy in the current investment market.

“There are arguably far more opportunities now for long-term investors than there have been in the past couple of years. This is a function of more volatile global markets.”

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