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Finweek English Edition - - COVER -

value man­agers are bullish on cheap oil stocks, fund man­agers with a shorter in­vest­ment hori­zon don’t quite share the sen­ti­ment. Don­ald Ro­gan, the head of stock­broking at Ned­bank Pri­vate Wealth, told re­porters that his port­fo­lios are cur­rently un­der­weighted in re­sources, in­clud­ing oil. The bank ex­pects the oil price to sta­bilise at $65 (R771)within a one-year pe­riod, while it ex­pects the com­mod­ity to reach $80 (R949) within the next two to three years.

“Given where we see the oil price go­ing, I think there’s still a lot of un­cer­tainty in the mar­ket. We do still think it’s a bit early to get into com­modi­ties.”

Tom de Lange, chief in­vest­ment of­fi­cer at Em­peror As­set Man­age­ment, cau­tions against the op­por­tu­nity cost of such a value ap­proach. “From a mo­men­tum per­spec­tive, it’s not a good time to buy that kind of stock. It could take up to two years be­fore the share price gains enough mo­men­tum to out­per­form the mar­ket on a monthly or quar­terly ba­sis.”

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