Sun, Jun 26, 2016
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. Opalesque Roundup: Hedge funds shrink as liquidations outpace new launches in Q1: hedge fund news, week 27[more]

    In the week ending 17 May, 2016, HFR said hedge fund liquidations declined narrowly to begin 2016 after rising sharply to conclude 2015, as investors positioned f

  2. Europe - Hedge funds keep powder dry over big Brexit bets, Hedge funds sense profit in Europe shock waves after Brexit vote, Soros warns Brexit may cause pound plunge worse than Black Wednesday, After Brexit: What will happen if Britain votes to leave the UK?[more]

    Hedge funds keep powder dry over big Brexit bets From FT.com: Hedge funds are shying away from big bets on Brexit, with many unwilling to risk further losses having already suffered a painful first half of the year. With the outcome of a UK vote on the country’s membership of the Europea

  3. News Briefs - ’Flash Boys’ get green light to launch stock exchange, Pimco says ‘storm is brewing’ in U.S. commercial real estate, Bankers get ready to rumble at Hedge Fund Fight Night, AIMA Australia celebrates 15th anniversary[more]

    ’Flash Boys’ get green light to launch stock exchange In an investing environment ruled by fast, the newest U.S. public stock exchange is banking on slow. Well, slower. IEX Group, which won Securities and Exchange Commission approval on Friday to go head-to-head with the New York Stock E

  4. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  5. Visium hedge fund manager Sanjay Valvani found dead[more]

    Benedicte Gravrand, Opalesque London: A hedge fund manager connected with an insider trading case has apparently committed suicide. Sanjay Valvani, 44, a hedge fund manager at New York-based Visium Asset Management, was found dead in an apparent suicide on 21 June in his Brooklyn residence,