Finding value in North America – M&G (Lux) North American Value Fund
We believe investing in cheap, out-of-favour companies can be a rewarding strategy for selective active investors. In our opinion, stocks can become undervalued because investors’ decisions are frequently driven by emotion. Many market participants tend to focus on companies’ short-term problems and therefore misjudge their long-term prospects. Investors often over-react to bad news, causing share prices to fall more than is justified.