Ben Leyland, a fund manager at JO Hambro Capital Management (JOHCM), described long-term equity investing as a “dying art” and said the asset class is increasingly identified with short-term speculation.
Ben Leyland, who joined JOHCM in 2006, said: “Long-term equity investing has become something of a dying art.
“The difficulties of macro forecasting and the accelerating pace of structural change, predominantly driven by technology, has led equities to be viewed as an asset class for short-term speculation rather than long-term investment.”
However, he said this had created a “tremendous opportunity” for investors who are prepared to go “back to basics”.
He even claimed there was a “generational opportunity” to buy into undervalued equities.
“In today’s low return world, the high, compounding returns that highly cash-generative blue-chip companies with solid balance sheets can produce by reinvesting steadily year after year make these stocks extremely attractive.
“As ever, time horizons are critical, but for the investor with a five to ten-year investment horizon and beyond, we believe this could prove to be a generational opportunity to buy into undervalued, quality corporate assets globally.”
Leyland made the comments as JOHCM, which has £8 billion (€9.9 billion) of assets under management, announced today the launch of the JOHCM Global Opportunities strategy.
©2012 funds europe
