Wed, Sep 28, 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. Nobel Sustainability Trust, Prince Albert II of Monaco help launch major new initiative to drive sustainable technologies[more]

    Matthias Knab, Opalesque: The Nobel Sustainability® Trust ("NST") is leading a major new initiative to finance, incubate and accelerate the development of clean technologies. The initiative will start with the formation of the Nobel Sustainability Fund® ("NSF"). NSF will drive faster access t

  2. Studies - Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements, Cambridge: Look to private investments for best access to LatAm growth[more]

    Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements A new study of the hedge fund space by industry law firm Seward & Kissel LLP reveals a wealth of information regarding established hedge fund managers’ use of side letters—special agreements

  3. Activist News - Caesars 'optimistic' on deal with hedge fund creditors[more]

    From Reuters.com: Caesars Entertainment Corp said on Monday it remains "optimistic" of reaching a $5 billion deal with the bulk of its creditors to push its main operating unit out of bankruptcy, but one hedge fund bondholder said it will pursue litigation. Caesars offered a sweetened $5 billion set

  4. Hedge funds recover from losses as central banks give markets a respite[more]

    Komfie Manalo, Opalesque Asia: The Lyxor Hedge Fund index was up 0.4% from the week ending September 20 (-2.4% YTD), supported by the willingness of central banks to remain accommodative, Lyxor Asset Management said in its weekly briefing. It ad

  5. Perry Capital closing flagship fund after almost three decades[more]

    From Blooomberg.com: Richard Perry, one of the biggest names in hedge funds, is calling it quits after 28 years. Perry, 61, is winding down his New York-based flagship fund as the industry confronts one of the most tumultuous periods in its history. In a letter to investors Monday, he said his style