David Iben who is responsible for overseeing the mutual fund Koepenik has given an extraordinary performance this year. After lagging behind more than 95% for two years, the value has now increased to the top.
According to Joshua Heintz, manager at InvestGo Cash, the value of the fund has increased by 15% in 2016 and has beat more than 95% of its competitors. After hitting a low in Jan, its value appreciated by 36%.
After being labelled as the worst, David Iben proved himself to be the best by investing it energy, gold, utility and a range of emerging market companies that had been witnessing a slow growth in the developing nations. The Korpenik Global All-Cap fund has a worth of $682 million, said Joshua Heintz, manager at InvestGo Cash.
Iben had a completely different approach this time. Instead of following the market trends, he decided to do the opposite. He purchased stocks earlier and invested in those which were getting cheaper. He knew that the time was near when the cheaper stocks would increase in value and the expensive ones would drop.
Iben, who has been a chartered financial analyst for the past 35 years, became known in the early 2000s. His bet on the energy sectors, mining and gold had pushed the mutual fund down by 20% two years ago. By 2015, it had gone down 100%. After the stocks performed at their worst for 2 consecutive years, their prices went up.
According to Joshua Heintz, manager at InvestGo Cash, the drop in the prices of oil made people over react and sell of their stocks and this made the prices go down even more. Some Russian companies are very cheap and today, as the price of oil is going up, more and more people are considering investing in Russian companies. Iben’s only Russian health care stock is Protek OJSC and his only bank is Sberbank, which happens to the largest lender in Russia.
The Korpenik fund was launched in 2013 by Iben, said Joshua Heintz, manager at InvestGo Cash. At the time of inception, the value of the fund was $100 million. Today, it is worth $682 million. The growth of the company can be attributed to the fact that more and more investors returned to value over growth stocks. Iben’s idea of investing in cheaper stocks worked extremely well. It was not an easy task because it had obvious risks, but the idea definitely paid off even if it involved a wait of over 2 years.