At 1798 we have always believed that returns are much better on a risk-adjusted basis when an investment opportunity is starved for capital. As such, we look for opportunities and areas where there is less trading and no crowdedness. Ultimately, however, returns are driven by flows as well as value, so we do want company at some point. Others need to recognise the opportunity eventually. 

We often see contrarian investing as having better risk-rewards: if no one expects a trade to work, there are fewer potential pitfalls. The reward doesn’t come right away, though, given the time it takes for flows to arrive. Mixing contrarian opportunities with more momentum themes when constructing portfolios is a great idea, as they are perfectly complementary (the risk-reward gradually diminishes, but it can continue to earn for a long time). 

In both cases, detailed fundamental work remains necessary to avoid investment traps.