All Cap Value

We believe that positive performance can be achieved by investing in statistically cheap, undervalued stocks for which there is a positive catalyst; in a nutshell, “good value” and “good news”.

Contrarianism pays: Because stocks of companies, whose recent results have been poor, are consistently underpriced; investing in low-expectations, out-of-favor, statistically cheap stocks is the first step in a winning strategy.

Statistical cheapness is necessary but not sufficient: To distinguish between stocks that are merely cheap and those that are truly undervalued, the successful contrarian investor employs risk-aware valuation disciplines that are grounded in long-term fundamental analysis.

Value traps can be avoided with patience: Statistically cheap, undervalued stocks can stay that way for a long time. The best value-managers side-step value traps by waiting until investor sentiment ceases to deteriorate and a positive catalyst is on the horizon. Catalysts can come in many forms: new product, new management, merger/acquisition, restructuring, and regulatory change to name a few examples.