Patience is a virtue for contrarian investors, who often must wait to see their investments in unloved stocks get rewarded.
Winkowski, 53, sums up his strategy neatly: Take a contrarian view toward bottom-up stock selection to create a concentrated portfolio of 60 to 80 names of large, industry-leading companies that trade at a substantial discount to intrinsic value, and hold them for at least two to four years. The fund’s returns show that sticking with this philosophy has paid off.
The team starts its research with a front-end screen to flag potential candidates; then the legwork commences. Each analyst conducts more than 250 company meetings annually, looking for strong management teams with good governance practices, and Winkowski’s team compares notes with the larger Federated Hermes equity and fixed-income staff to incorporate more input.
Covid’s market impact offered Winkowski a rare chance to bank on a theme—that leisure and business travel would rebound to 2019 levels this year. Those picks have powered year-to-date and one-year performance. In addition to Rolls-Royce, International Leaders bought British-based Informa , one of the largest global trade-show and events operators, in March 2021.
International Leaders’ biggest county exposures are to the U.K. and France, but Japan now has the third-largest weighting. Winkowski is excited about Japan because, for the first time in decades, the country is starting to see growth, with both inflation and wages increasing.
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Source: CNBC - 🏆 12. / 72 Read more »