Value investing has proven to be a successful strategy over the long term. While growth stocks have dominated the market, factors such as economic recovery, higher interest rates, inflation, and geopolitical risks could contribute to a sustained period of outperformance for value investing. By strategically investing in undervalued assets with strong upside potential, investors can navigate the complexities of the market, achieving superior returns over the long run.

In this episode, Rusty and Robyn talk with Rand Wrighton, Managing Director and Senior Portfolio Manager at Barrow Hanley Global Investors. Rand began his investment career at Barrow Hanley as a research analyst covering the Industrials, Energy, and Technology sectors. In 2006, he joined an internal group at Barrow Hanley to lead the firm's expansion into non-U.S., Global, and Emerging Market investment products. In his current role, Rand manages portfolios for the Barrow Hanley Emerging Markets and Non-U.S. Value strategies.

A value investor who focuses on finding undervalued stocks with strong fundamentals and good balance sheets, Rand talks about the current state and best market conditions for value investing. He also shares his insights on the current economic outlook and the impact of geopolitical risks. He touches on the U.S. dollar, the energy sector, recession, and inflation risk and offers advice on how to invest successfully in value.

Key Takeaways

[03:43] - Rand's professional background and how his experience shaped him to where he is today.
[06:02] - What sets Barrow Hanley apart from other firms?
[07:01] - How Barrow Hanley defines value investing.
[07:59] - The best market conditions for value investing.
[11:49] - How Barrow Hanley adapts its value investing strategy to changing market conditions.
[13:32] - Rand's outlook on recession and inflation risks.
[17:11] - How geopolitical risks impact Rand's decision-making.
[21:49] - How Rand positions his portfolio in the energy sector.
[24:35] - The impact of the U.S. dollar on Rand's portfolio positioning.
[26:38] - Rand's advice on how to be successful in value investing.
[29:04] - The people who have influenced Rand in value investing.
[30:20] - Rand's criteria for diversification within portfolios.
[32:21] - How Rand maintains his physical and mental energy to perform at his best.
[33:20] - The people Rand learned life lessons from.
[34:59] - Rand's recommendations for content.

Quotes

[09:30] - "Recessions are where you reallocate human and physical capital from areas that have been good places to be to areas that will be the next good places to be." ~ Rand Wrighton

[26:57] - "You need to think about investments in a way that makes sense to you and is tailored to your knowledge set, and that is something you can stick with." ~ Rand Wrighton

[30:07] - "Sticking to your discipline is really one of the secrets to success in our business." ~ Rand Wrighton

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3303-OPS-12/13/2023

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