Mundy's Moment: Diamonds in the rough

Picking the best of the worst performing companies

We can often detect a discernible hint of curiosity from clients when we mention our list of out-of-favour stocks has grown significantly in size.

What new fish are swimming in our pool? There is a sense they are expecting news of some outrageously high-quality stocks available at bargain prices. Sadly, on seeing the constituents of our 'naïve' out-of-favour screen, client curiosity quickly changes to something closer to polite disgust. Their sentiment is understandable, but in a way also completely predictable. The reality is companies can only be truly out-of-favour if investors have very genuine concerns about their futures. Mundy's Moments: Hold or fold? If an investor thinks they have discovered a 'gimme' it is often ...