Profiting From Pessimism: A Contrarian Large-Cap Medalist
Strong stock-picking at Bronze-rated Columbia Contrarian Core has driven solid performance through a variety of market environments.
Strong stock-picking at Bronze-rated Columbia Contrarian Core has driven solid performance through a variety of market environments.
Gretchen Rupp: Guy Pope has been the sole manager at Columbia Contrarian Core (LCCAX) for more than a decade. He works with an experienced team of three analysts, who average more than 15 years of experience in the industry. They break their coverage by sector, although they are all generalists at heart. Pope's initial screen identifies stocks trading in the bottom third of their 52-week range. He believes this is a first pass at uncovering investor pessimism toward their holdings.
Next, they will perform bottom-up fundamental analysis and speak with management to identify their picks, which they believe are value and growth opportunities that will turn around in the next 12 to 24 months.
The portfolio generally holds between 60 and 80 stocks, and turnover has been in the 40% to 70% range annually, although it has been higher in years like 2008 and 2011 when pessimism has been higher. Still, Pope will hold holdings for longer term as well. Honeywell is a top-10 holding and has been in the portfolio for more than 10 years. Pope believes management still continues to show high growth and earning potential.
The team's strong stock-picking skills have led to solid performance over Pope's tenure. It's performed well in a variety of market environments, and it's beaten its benchmark by more than two percentage points annually through April 2015. Investors should consider the share class through which they can purchase this fund. Some share classes carry a load, and some are higher than average compared with peers.
With its strong performance and consistent process, Columbia Contrarian Core is a solid option for investors and earns a Morningstar Analyst Rating of Bronze.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals
and individual investors. These products and services are usually sold through
license agreements or subscriptions. Our investment management business generates
asset-based fees, which are calculated as a percentage of assets under management.
We also sell both admissions and sponsorship packages for our investment conferences
and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.