Morningstar in Canada profiles Lawrence Chin, co-manager of the Mackenzie Cundill American Class fund.
The article mentions two stocks I own:
One is DirecTV Group (DTV/NYSE), which has done well since being bought but has suffered recently. The other is Foot Locker (FL/NYSE), which has fallen in price since being purchased:
Among the stocks that meet Chin's requirements is Foot Locker, a top holding in the fund. He likes this sports apparel retailer because of its strong brand presence, clean balance sheet and cheap valuation. Since he made the initial purchase last year, the stock has struggled because of the company's weak earnings results, in addition to a weaker U.S. economic outlook. Unfazed by this, Chin has taken the opportunity to add to the position because he believes that the company's intrinsic value remains intact.
The profile then says:
The fund can experience periods of short-term underperformance because Chin will often invest in companies that are falling out of favour.
That's true for every practitioner of the value approach. In that respect, I certainly feel Chin's pain.
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