How to spot a good recovery story

EQUITIES

Alex Savvides, JOHCM UK Dynamic manager, reveals the criteria he uses to spot unrecognised value stocks in today's market.

Companies and markets are always in a state of flux, subject to constant evolution and change. This means that events and their effects on a company’s share price might only be transitory and should always be treated as such; share prices should be forward looking. My experience of investment, however, suggests that views of companies and their share prices can be backward looking and static, anchored to historic and irrelevant references, rather than dynamic and forward looking. In an attempt to arbitrage this anomaly, I spend much of my time looking for recovery situations in the st...