The Best Way to Make Money May Be to Initially Lose Money

Man Group’s 2016 Unconventional Views video series is designed to present original thoughts and insights that challenge the consensus view. The videos feature leading executives from the firm’s four investment engines, Man AHL, Man GLG, Man FRM and Man Numeric, explaining their views on various investment themes.

Contrarian investing is a complex strategy that generally involves buying when others are looking to sell. In this video, Himanshu Gulati, Portfolio Manager at Man GLG, outlines the key attributes required by a successful investor, pointing out that it can prove lucrative to focus on complex situations that most investors would rather avoid. He stresses that contrarian investors must have a set process that they believe in for evaluating potential investments in difficult or contentious situations that would lead many investors to sell their shares. He also explains that contrarian investors need to develop high conviction and targeted positions that give them an edge over other market participants, requiring an ability to understand complex legal issues. In sum, Himanshu maintains that contrarian investors must have strong discipline and an equally strong stomach, because this style of investing may mean losing money before you make money.

Past performance is not indicative of future results. The value of an investment and any income derived from it can go down as well as up and investors may not get back their original amount invested. Opinions expressed are those of the author, may not be shared by all personnel of Man Group plc (‘Man’) and are subject to change without notice.

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