Mawhinney is in this mornings AFR. He is talking about his AG fund's negative return of 11%
Reflecting Mawhinney's adherence to the strategy is the fact that poor performance has been exacerbated as the fund manager continues to add positions in the companies it likes, even as their share prices have continued to fall.
"If the thesis doesn't change as it falls 30 per cent, then it's a 30 per cent discount. Unless the future prospects of the company have diminished then you're crazy not to buy," he says.
Mining and minerals company Arrium is the only portfolio holding in which the thesis has changed and the fund has stopped buying, Mawhinney says. The capital outflows and increased debt because of the troubled iron ore business has challenged the company more than expected, he explains.
But the thesis for the rest of the portfolio remains intact and he expects less performance downside from here. He says investors who understand Allan Gray's style of investing have stuck with the manager because "if we performed any other way they might question how true to style we are."
We'll hopefully soon see.
ARI Price at posting:
5.4¢ Sentiment: None Disclosure: Held
