Sat, May 30, 2015
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 ‚Äėvalue 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 Exclusive: New TMT hedge fund adopts the long-term approach[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Adam Parker founded Center Lake Capital LLC in New York in November 2014. Before that, he was portfolio manager at Point State Capital (the successor fund to Dr

  2. Regulatory - Hedge funds face tax as Iceland poised to end capital controls, Comment: Why alternatives need more transparency, not enforcement[more]

    Hedge funds face tax as Iceland poised to end capital controls From Bloomberg.com: Hedge funds and other investors who bought claims against Icelandís failed banks face a tax that targets the lendersí estates as the government prepares to unveil its plan for exiting capital controls in t

  3. Investing - Nelson Peltzís Trian Fund Management reduces position in Legg Mason, Biotech investors up big amid bubble talk, Hedge funds increase exposure in healthcare[more]

    Nelson Peltzís Trian Fund Management reduces position in Legg Mason From Octafinance.com: Trian Fund Management has filled a SC 13D/A form regarding Legg Mason, Inc. Per Nelson Peltzís Trian Fund Managementís filing, the filler reported decreased stake in the company by -11.05% to 11,03

  4. All hedge fund strategies rebounded last week as market conditions normalize[more]

    Komfie Manalo, Opalesque Asia: After a difficult start this month, all hedge fund strategies ended last week in positive territory, as the Lyxor Hedge Fund Index gained 0.9% (-0.2% MTD, 3.3% YTD). According to Lyxor AMís latest Weekly Briefing, in t

  5. Billionaire hedge fund investor Odey says April 'bloody', has cut risk[more]

    From Reuters/Yahoo.com: Billionaire hedge fund manager Crispin Odey has cut risk and leverage following a stunning 19.3 percent loss in his 3.1 billion euros (2 billion pounds) Odey European Inc fund in April, a letter to investors seen by Reuters showed. Describing the month as "bloody", Odey

 

banner