It’s quite rare for one person to manage a large-cap mutual fund for a consecutive span of 25 years, but that’s just what Kevin C. Holt, CFA, chief investment officer, U.S. Value Equities at Invesco, is celebrating this summer.

Holt and Devin Armstrong, who have been co-lead portfolio managers for the Invesco Comstock Fund since 2007, apply a unique contrarian approach and classic value investing techniques.

Holt joins the 401(k) Specialist Pod(k)ast to share more about the approach, what he looks for in a value stock, and why 401(k) participants need a well-diversified portfolio to reach their retirement saving goals.

Key Insights

• Invesco Comstock Fund:
  Kevin C. Holt has managed the Invesco Comstock Fund for 25 years, with a contrarian approach and classic value investing techniques.
• Contrarian Value Investing Strategy:
  Holt emphasizes a contrarian strategy that combines valuation metrics with behavioral psychology. He focuses on sectors where pessimism is high and valuations are low, like healthcare and consumer staples, adapting the strategy to changing market conditions.
• Importance of Diversification in 401(k) Plans:
  Holt advocates for well-diversified portfolios within 401(k) plans, stressing that diversification across growth and value stocks is crucial due to the unpredictable nature of market cycles and the historical performance during different inflationary periods.

Disclosures

Not a Deposit | Not FDIC Insured | Not Guaranteed by the Bank | May Lose Value | Not Insured by any Federal Government Agency

All data provided by Invesco unless otherwise noted.

The opinions expressed are those of the author as of July 22, 2024. These comments should not be construed as recommendations, but as an illustration of broader themes. Forward-looking statements are not guarantees of future results. They involve risks, uncertainties and assumptions; there can be no assurance that actual results will not differ materially from expectations.

Diversification does not guarantee a profit or eliminate the risk of loss.

This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.

P/B (Price-to-Book): it compares the price of the stock with its book value (total assets minus total liabilities). It is commonly used for banks. P/S (Price-to-Sales): it compares the price of the stock with its sales (renevues) from the last twelve months. It is commonly used for companies that have losses. Price-to-earnings (P/E) ratio measures a company's share price relative to its earnings per share (EPS).

Enterprise value-to-sales (EV/Sales) is a financial ratio that compares a company's total value to its total sales revenue.

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