America's reverse-strategy fund is a great way to go

The American "Warren Buffett" has a famous saying: Greed when others are fearful, fear when others are greedy.　　For some fund managers, this is not only the advice of elders, but also their investment strategy.　　In fact, contrarian investment (contrarian investing) is the choice of stocks that are temporarily off the market, which, while not a brand new investment strategy, requires some investors to keep buying "appetites" when the market is historically low.　　So when a lot of people left in a hurry in 2008, we saw some fund managers actively buying, even those industries and stocks that were generally not favoured. Reverse investment doesn't always work. Bernie Mcgin, president and investment director of the US Mcgin Investment management company, said: "The new clients often question me when I buy shares and ask if I know what hell looks like." "However, customers will soon adapt to his unusual investment strategy."　　' Customers usually ask why he doesn't buy certain stocks, ' says Bernie Ecclestone. Mcgin said: "The basic assumption of investment is low buy high sell, but the crux of the problem is that the so-called ' low ' is that few people are willing to buy.　　"Even those seasoned professional investors are not always able to pinpoint this low," he said. David Dreman and Matty Whitman, two prestigious contrarian investors, were also hit hard by the funds they managed in 2008.　　David De Lehman's reverse-market Value Fund (DCLCVF) fell 45% last year, while the Matty Whitman-managed Third Avenue Value Fund (TAVF) shrank by 46%.　　Bill Miller is also a star manager who is good at contrarian investments, but the US Trust fund, which he manages, also lost 55% in 2008.　　With the recent rally in U.S. equities, these contrarian funds are starting to show performance advantages, and they are basically winning the market.　　As of May 8, the standard and Poor's 500 index had risen by about 2% per cent this year, but the net worth of the de Lehman Reverse market Value fund had risen 7% per cent, while that of the Third Avenue Value Fund and the value of the US trust Fund had risen by 13% and 8% respectively. "Contrarian investment is an investment strategy that is hard for individual investors to practice," says Russell-al-Rockwell, a mutual fund research firm Morningstar analyst. He said: "It is difficult for investors to choose the right time to enter the market, a underperforming stock is likely to fall further." Analysts point out that reverse investment is not an absolute guarantee of success, as evidenced by the performance of these reverse-strategy funds over the past 2008 years. "Every fund manager has its own differences, and they can make mistakes," said Morningstar analyst Al-Gore. Not only that, but they also make some big mistakes. Reverse-Strategy fund managers generally don't think things will get any worse when they buy stocks, but last year showed that in a bad year, not only financial stocks, but also some of the cyclical industry's big companies are holdingcontinued to deteriorate. "As an investor in a large-market contrarian, the gold rush in a bear market is like trying to grab a falling knife, and those stocks that are down will fall even more," Mcgin said. "Contrarian investment to withstand the lonely evergreen Capital Management Company (EVERGREEN) Fund managers take Buffett's motto as a golden rule to pursue.　　The company has carefully studied the purchase and redemption of funds in mutual funds, thus determining the timing of their entry into the market, especially those with the largest net redemption.　　David Hai, investment director of Evergreen Capital Management, said: "The vast majority of investors are wrong-cycle investors who closely track performance, focus on short-term results, lack patience in investment, and ignore market cycles." Patience is the key to investment.　　Bernie Mcgin says his portfolio turnover rate is 30%, which means he only adjusts one-third of his portfolio each year, and Morningstar provides data showing that the average turnover rate for the U.S. equity Fund is 100% a year. Eyne La Pevi, a portfolio manager at the Third Avenue Value Fund, said: "If investors take a year or two to think about it, I don't think he will buy anything in the current situation because the outlook for profitability is very bad."　　La Pevi said his fund held a stock for an average of 5 years, and his annual turnover rate was only about 10% per cent (though, last year, a big increase in redemptions from fund holders increased the turnover rate of the portion of his investment that he managed to 20%). Aston/optimum si Lah Zei Juhu, the fund manager for the Pan-stock fund, also took the same long-term investment perspective. She holds shares for 5 years-7 years, and usually holds 40 shares in her fund.　　Si, however, does not want to call herself a "contrarian investor," she says, and she just likes to buy stocks that are dumped by others. David Hai said that the Evergreen Capital Management Company's portfolio turnover rate is around 30%, and the company's flagship product is an indexed exchange-traded fund (ETFs) whose investment strategy links cash flows to valuations.　　Capital outflows and undervalued values mean "buy", and low capital inflows and high valuations are "sell" signals. In favor of the crisis of stock Morningstar analyst Al-Gore suggests that investors should at least configure a contrarian investment-style fund in their portfolios. "This will help individual investors get a decent return on their investments," he said.　　"The most favoured contrarian style fund is the Third Avenue Value Fund and the FPA Capital Fund, which lost 35% of its net worth last year, but the return on investment so far this year has reached 18% per cent." Al-FPA also recommends that investors focus on another similar style of fund--FPA Crescent Fund under the first Pacific Asset management company.　　Steven Romic has not yet planned to leave the fund, which lost 21% of its net worth last year, but has risen 7% this year. Mcgin is very bullish on Bank of America,Part of the reason is that the stock's share price is now being valued by the market as a "crisis model", rather than in terms of its true value. "Bank of America, one of America's largest asset managers and mortgage lenders, is unlikely to be nationalized, so its share price is now looking very cheap," he said. "Mcgin has been in the Ford stock market for several years and has been involved in Ford since he became CEO of Ford Motor Company in 2006," he said. Mcgin said: "I have some speculative factors in buying Ford's stock, mainly on the success of Mulally in the Boeing Company." The ' terrorist attacks ' had a big impact on Boeing, when Mr Mulally, Boeing's senior vice president, eventually led the company out of the woods. La Pevi said that the Third Avenue Value Fund's first major heavy stock is the Hong Kong-based Henderson Real Estate Limited, accounting for 12.5% of the total assets of the fund.　　The company has a very good balance sheet and a good profit last year and is expected to achieve double-digit profit growth in 2009.　　However, Henderson's shares fell 50% last year and rebounded 40% this year, even though La Pevi believes the shares are still below their net worth of about 30% per cent. "The newspaper is one of the most admired newspapers in the English-speaking world," said Si Lah Zei Juhu, a aston/optimum-stock fund that manages the New York Times. In the long run, the newspaper represents good value because it can expand market share and increase core subscribers as other competitors struggle.　　"Core Subscribers are subscribers who subscribe to more than two years, and in recent years the New York Times's core subscribers have risen from 600,000 to 800,000." ' Share prices are insensitive to these factors, and investors are usually slow to recognise that a company has a "unique advantage" that rivals don't have, Si said.