Sun, Dec 21, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers December 2012

Focus - All about value investing

Part 1 - Is value investing a good strategy for today?

To some, value investing makes complete sense, to others it is no longer a suitable strategy as the economic environment can no longer be ignored.

There is handful of value investing funds in Opalesque's Emerging Managers database, and in Part 1 of this report, two of these emerging managers give their views on their strategy - as well as two experienced investors. They explain the challenges and benefits of value investing, and why it is - or not - a good strategy to use nowadays. Part 2 gives you an account of a recent analysis of Buffett' approach. Recent trades will not be covered in this report.

Value investing is the strategy of selecting stocks that trade for less than their intrinsic values. Its main challenge is knowing what a stock's intrinsic value really is.

Alexander Ineichen, well-known hedge fund analyst, author and founder of Ineichen Research and Management AG, describes value investing as such:

Value investing is defined as investing in ‘value stocks'. Value stocks are usually regarded as stocks which have been neglected by the market, have underperformed and therefore trade at low price/book ratios, low price/earnings multiples, and have a high dividend yield. Growth stocks, on the other hand, are stocks for which earnings are expected to grow faster than average in the future.

Benjamin Graham is often seen as the father of value investing, and among the current famous value investors are Warren Buffett (Berkshire Hathaway), Bill Ackman (Pershing Square) and David Einhorn (Greenlight Capital). You can see some well-known value investor......................

To view our full article please login

This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.
New Managers
New Managers
New Managers

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  4. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  5. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und