Value Investor Insight

Western Standard Partners’ Eric Andersen, Jason Sohal and Forest Zhang explain why they don't run into a lot of other investors when visiting companies, why they still actively short, the key lesson learned from an idea gone wrong, and where they see unrecognized value today in Value Investor Insights current issue. $HFG $CUERVO $SAX $VTOL $COP https://lnkd.in/eqDxpWYU #valueinvesting #stockresearch #valueinvestors #internationalstocks

Firstlight Management’s AJ Secrist describes his basic approach as fundamentals-first activism. “I’m a fundamental analyst at heart. But I’m also looking to engage with management teams and boards to add idiosyncratic value on top of that by partnering with industry executives who provide unique intelligence and immediate credibility with the target-company boards.” Each investment is then structured as a separate investment vehicle in part so they can then add these executives as partners and directly compensate them through the P&L of the vehicle. This structure also alleviates the pressure to deploy capital into sub-optimal ideas. “I can wait forever for fat pitches. I don’t need to deploy capital into or do any ongoing maintenance on mediocre ideas. I can just take big swings at those special opportunities that only materialize a few times per year.” So what “big swings” is AJ taking now? $KNF $SHC https://lnkd.in/eAfTTbaG #valueinvesting #stockresearch

It doesn’t phase Matthew McLennan that a value investing approach has been mostly out of favor since he took over First Eagle Investments’ Global Value team in 2008. “Being price sensitive has been a headwind when many stocks that have performed best have had valuations untethered to economic reality,” he says. “But committing to this philosophy means being willing to be short social acceptance, often for some time.” In the just-released issue of Value Investor Insight Matt discusses where he and his team are finding value today, including in such diverse areas as consumer healthcare, bicycles, real estate, banking, and energy infrastructure. https://lnkd.in/exNKTc36 #valueinvesting #stockresearch #valueinvestors #internationalstocks

One thing that makes investing so interesting – and challenging – is that ideas are always works in process as events unfold. In the current issue of Value Investor Insight, Quentin Velleley of Third Avenue Management updates the dynamic investment case for Mexican real-estate developer Inmobiliaria Vesta. $VESTA https://lnkd.in/eiqGvsee #valueinvesting #valueinvestors #mexico #realestate

Causeway Capital's Sarah Ketterer is as enthusiastic as ever about the opportunity in international equities: “Non-U.S. is like one giant value market,” she says. “What makes 2024 different is that now more management teams and boards truly care about their share prices.”  Targeting companies facing cyclical challenges or those undergoing some sort of operational restructuring, Ketterer describes in the latest issue of Value Investor Insight why she sees mispriced value today in areas such as consumer products, semiconductors, luxury goods and rail transportation. https://lnkd.in/eU8Ww9JX #valueinvesting #stockresearch #valueinvestors #internationalstocks

Baseball metaphors abound in investing, at least in the U.S., and Fiduciary Management’s Jonathan Bloom uses an apt one to describe his firm’s approach: “It’s as true as ever that investors are looking to hit home runs,” he says. “We're content to hit singles and doubles and actually think the secret to the business is more in reducing strikeouts.” Looking to pay “sufficiently cheap” prices for advantaged businesses that prosper when times are good and gain ground when times are difficult, Bloom and his team discuss in the latest issue of Value Investor Insight where they are finding idiosyncratic opportunities today (link in the comments). $BME $G $GTES $FBIN $SW #valueinvesting #stockresearch #valueinvestors

“Share prices are volatile in the short term, while good businesses grow their value per share over time,” says Hotchkis & Wiley’s George Davis. “Investors’ overemphasis on the present is what creates the value opportunity.” In Value Investor Insight's current issue, Davis and co-portfolio manager Scott McBride discuss where they're finding mispriced value in such areas as oil and gas, telecom equipment and U.S. banking. $APA $ERIC $USB https://lnkd.in/eztVrfVZ #valueinvesting #stockresearch #valueinvestors

Assessing a company’s “fundamental value” on its discounted future cash flows might seem an obvious approach for an investor, but Alpine Capital Research’s Nick Tompras finds it increasingly unique. “There’s a clear distinction in investing as if the market is going to close for ten years and trying to forecast when the stock price will move,” he says. “One edge we have is focusing on how the value unfolds, not what the price does in the short run.” In Value Investor Insight's current issue Nick discusses how he looks for asset and earnings-power mispricing and where he's finding it today. $MGA $LBTYA $POW https://lnkd.in/eng46_xv #valueinvesting #stockresearch #valueinvestors

Following an extended visit to the company’s U.S. operation, Andrew Hollingworth of U.K.-based Holland Advisors explains in this report his admiration for the business model and culture of equipment-rental company Ashtead Group. https://lnkd.in/epyjJrcU $ASHTY #valueinvesting #stockresearch #industrials

When markets are hitting all-time highs, as they are today, investors almost by definition collectively see the glass half full rather than half empty for the economy, industry sectors and individual companies. To contrarians, such an environment is one where caution and an increased focus on what can go wrong might be in order. To explore that further, we spoke with experts on the subject of assessing downside, managers of dedicated long/short equity strategies Daniel Barker and Eric Almeraz of Apis Capital, Solas Capital's Tucker Golden, and Medina Value Partners' Kris Medina. They discuss the opportunity set today for short selling and identify downside potential in areas including solar energy, physical therapy clinics and vitamins. https://lnkd.in/eKJsbkbi #shortselling #value #valueinvestors #stockresearch