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Your instant 3 share contrarian portfolio

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.

Do you know our #1 Stock Pick

The above three picks could all be worthwhile additions to your portfolio but as I said - contrarian investing isn't for everyone! For a stock that can fit any investment style don't miss our #1 Stock Pick - it's a great all-rounded stock. The Motley Fool has issued a firm "BUY" rating on it and you can get the name and code FREE right now. Click here for your free copy of "The Motley Fool's Top Stock for 2014."

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

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