uncomfortable at points this year . But over the past two months , value has led growth , “ old economy ” shares have bested tech , and smaller companies have beaten goliaths . Broadly , what we own has done well , and what we don ’ t own has suffered — in relative terms , July was the Global Equity Strategy ’ s best month since the global financial crisis .
This is a pattern we ’ ve seen throughout history . At some point in every bull market , investors come to appreciate the value of previously unloved shares , while demanding more of those in favour . Take Nvidia . Despite reporting results most businesses can only dream of — sales and earnings both grew > 120 % in a single year — its price fell by 6 % the following day . When expectations get too high , good news isn ’ t good enough news .
Nvidia is not alone . The stocks that suffered most during the recent volatility were those whose valuations — and expectations — were most stretched coming into it .
Our goal is to find the opposite : companies where expectations are low . Companies where good news really is good news , and even bad news can be positive if it ’ s less bad than expected . This also provides a measure of downside protection — it is far harder to disappoint pessimists than optimists .
VISIT THE WEBSITE TO FIND OUT MORE .
Disclaimer :
Past performance is not a reliable indicator of future results . The value of investments in the Orbis Funds may fall as well as rise and you may get back less than you originally invested . It is therefore important that you understand the risks involved before investing . This report represents Orbis ' view at a point in time and provides reasoning or rationale on why we bought or sold a particular security for the Orbis Funds . We may take the opposite view / position from that stated in this report . This is because our view may change as facts or circumstances change . This report constitutes general advice only and not personal financial product , tax , legal , or investment advice , and does not take into account the specific investment objectives , financial situation or individual needs of any particular person . This report does not prohibit the Orbis Funds from dealing in the securities before or after the report is published .
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