How Anthony Srom uses sentiment to generate value

This article first appeared in Livewire markets on 9th September 2022

"High Conviction" is bandied about a lot in the investing world. But how does one actually find stocks that fit the bill?

For Fidelity’s Anthony Srom, in large part, it's a function of misguided sentiment. 

"The process for me revolves around looking at fundamental sentiment and valuation for every company," he says. 

"Negative sentiment is a very good filter for me in terms of idea generation in the first instance."

When market sentiment swings too far, opportunities arise. It's from here that Srom is able to identify the companies that have a shot of making it through his filters. 

In this wire, Srom takes us through this process and backs it up by identifying some stocks in Asia-Pacific that have been dismissed by the market - in his view, unfairly. 

"It's just a question of when will the market reward such a company," he added.

He also dives into China's property crisis and what that means for investments in the Middle Kingdom.