David Dreman | Contrarian Investor
Profile: Dreman's Kemper-Dreman High Return Fund was one of the best-performing mutual funds ever, ranking as the best of 255 funds in
its peer groups from 1988 to 1998, according to Lipper Analytical Services. At the time Dreman published Contrarian Investment Strategies:
The Next Generation, the fund had been ranked number one in more time periods than any of the 3,175 funds in Lipper's database. In addition
to managing money, Dreman is also a longtime Forbes magazine columnist.
Investment Strategy: Dreman believed that investors are prone to overreaction, and, under certain well-defined circumstances, overreact
predictably and systematically. They typically overvalue the popular stocks considered the "best", and undervalue those considered the "worst",
often going to extremes in these over- and under-valuations. Because of that, he focused on stocks that most investors were shunning -- those
with low price/earnings, price/book, price/dividend, and/or price/cash flow ratios. Then, to separate stocks that had been beaten down because
of investor overreaction from those that were outright dogs, he applied a number of other fundamental tests, looking, for example, for a high
current ratio, high return on equity, high pre-tax profit margins, and a low debt/equity ratio.
Book Used for Strategy: Contrarian Investment Strategies
Model Portfolio Performance:
Since Inception: 4.19%
TSX: 7.27%
Full Performance Details
Stocks Passing Strategy: 10 Stock Model Portfolio | All Stocks Passing Methodology
Recent Upgrades and Downgrades:
Upgrades - CAPSTONE MINING CORP. | TORSTAR CORPORATION | MAGELLAN AEROSPACE CORPORATION | CO-OPERATORS GENERAL INSURANCE COMPANY | SENVEST CAPITAL INC. |
Downgrades - CAPSTONE INFRASTRUCTURE CORPORATION | TERANGA GOLD CORPORATION | CAPSTONE MINING CORP. | MAGELLAN AEROSPACE CORPORATION | CAPSTONE INFRASTRUCTURE CORPORATION |
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