Testing whether contrarian investment strategy offer profitable opportunity at Nairobi stock exchange
Abstract
Contrarian investment strategy i.e. the act of buying past losers and selling
previous winners have been studied widely in developed markets such as
the US, and UK. In spite of the importance of studying past performance,
very little research, if none, had been conducted to test if contrarian
strategies hold in the Kenyan emerging stock market. This study therefore
sought to bridge the gap in literature by being one of the pioneering works
in this topic in Kenya by determining whether contrarian investment
strategies offer profitable opportunities in the Kenyan Stock market.
Monthly returns were calculated and winner and loser portfolios formed
on the basis of their performance. The empirical findings suggest that
contrarian investment strategy offer profitable opportunities at Nairobi
Stock Exchange, especially in the short term.
Citation
A Management Research Project Report Submitted in Partial Fulfillment for the Requirements of the Degree of Masters of Business Administration (MBA), School Of Business, University Of NairobiPublisher
Business Administration