Value investing in an irrational market

Irrational behaviour can be the downfall of investors. Instead of attempting to be quicker than other market participants, value investors’ success is rooted in patience, facts and rational decision-making, allowing them to seize opportunities that others may overlook. Irrational actions occur daily in stock markets, with participants buying or selling securities for many reasons. When this happens, long-term value investors are there to take advantage. Multi-strategy hedge funds, for example, are driven by the need for rapid portfolio turnover to achieve daily or weekly profits, while managing...