This strategy focuses on identifying shares in cheap or out-of-favour companies around the world that we believe are undervalued and likely to outperform the market over time.
Seeking to capture the value phenomenon, our goal is to identify cheap stocks that we believe will benefit from their market prices returning to levels that reflect the true value of the business.
Our differentiated approach is designed to avoid common problems associated with value investing, namely volatility and so-called ‘value traps’, or, stocks that are cheap for a reason.
Stocks are selected using a disciplined bottom-up process that combines strict valuation screening with rigorous fundamental analysis. This enables us to identify cheap stocks that are being mispriced and eliminate those with material barriers to mean reversion.
We construct a diversified portfolio of cheap stocks, where the main drivers of returns are expected to be the value style rather than any individual sector or stock.