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David Dreman | Contrarian
If you relish going against the crowd, David Dreman's contrarian investment style should suit you
well. Dreman is manager of the Kemper-Dreman High-Return Equity Fund and an investment columnist for Forbes magazine.
From 1990 through 1997, Dreman's fund outpaced the S&P 500 by an average of 3.6 percentage
points per year. His affection for deep-discount value stocks was sorely tested in 1998 and 1999, when the stock market rewarded momentum
stocks to the exclusion of almost everything else, but his long-term track record suggests that his style will serve him well over the long
haul. (During the first five months of this year his fund trounced the S&P 500.) Dreman likes to invest in large, fundamentally sound
companies (good earnings growth, good return on equity, low debt-to-equity ratio) that are out of favor due to public apathy, delirium or naiveté.
Such companies can be recognized by their low price relative to their earnings, cash flow, book value or dividends.
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