Your instant 3 share contrarian portfolio

It's hard to do better than the crowd if you simply invest with the crowd.

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Running a completely contrarian portfolio requires nerves of steel. Owning stocks which the rest of the market is avoiding is more pressure than most people feel comfortable taking on.

While a portfolio completely filled with contrarian investment opportunities does not suit most investors, allocating a portion of a portfolio to undervalued and unloved opportunities can work well.

Here are three contrarian opportunities that I think look appealing at the moment.

Ten Network Holdings Limited (ASX: TEN) is a truly contrarian play. Its low TV ratings have led to investors fleeing the stock, however as Motley Fool contributor Tom Richardson outlined here, there is good reason to consider Ten a potential merger and acquisition target.

Super Retail Group Ltd (ASX: SUL) has also fallen out of favour with investors, with the retailer's share price down 25% in the past year. The stock price is now down to a level where it is trading on a forecast PE and fully franked yield of 15.5x and 4.1% respectively.

QBE Insurance Group Ltd (ASX: QBE) has performed disastrously in recent years, however there are reasons to suspect (and hope) that the worst is now behind the global insurance giant. A major cost-cutting program, the potential sale of underperforming assets and a return to a more normalised claims environment could all help QBE report higher earnings in coming periods.

Motley Fool contributor Tim McArthur owns shares in QBE Insurance Ltd.

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