Veteran investor David Paradice, whose eponymous funds management firm manages almost $16 billion, is a noted contrarian on investor. He says the best time to buy is when others are cautious – and there’s nothing better than finding a diamond among the stocks the market has turned its back on.

“I love it when there’s a bombed-out situation,” Paradice told an event held by the philanthropy-focused listed investment company operator Future Generation in Melbourne on Tuesday.