The Value Perspective is an extensive resource for providing information on 'value investing' in equities. Value investing is a proven, long-term approach which focuses on exploiting swings in stockmarket sentiment, targeting companies which are valued at less than their true worth and waiting for a correction. We aim to share the thoughts, opinions and passions of five experts in this field, along with independent commentators, providing greater insight into this often poorly understood area of equity investing.
31 Jul 2014
From time to time – though admittedly with what, in recent months, has felt like a good deal greater frequency – The Value Perspective likes to highlight an asset class that looks to be overpriced. This time, our attention has fallen on the relatively young and still relatively small sector that is the non-life catastrophe bond – or ‘cat bond’ – market.
29 Jul 2014
Everybody will have their own idea as to what is and is not ‘fun’ but, even so, The Value Perspective was a little taken aback to read the following comment in a recent Financial Times article: “We are in a bubbly market, but my expectation is that most people who are buying and selling thought they were just having fun speculatively trading a promoted security.”
25 Jul 2014
To what degree should investors ever blame themselves for the mistakes of their investment advisers? Here on The Value Perspective, we were tempted to take a few steps towards this particular ethical minefield after reading an article about one small but interesting differentiating factor between an economic downturn and a financial crisis – the practice known as ‘financial looting’.
24 Jul 2014
One of the things that most caught The Value Perspective’s eye about the record $9bn (£5.25bn) settlement BNP Paribas has agreed with US prosecutors in relation to allegations of sanctions violations was not the huge price-tag nor even that it all but cancels out all of 2013’s profits – effectively meaning the staff of an international bank spent the whole of last year working for the US Treasury.
23 Jul 2014
When does an asset class become so expensive that even the fund managers specialising in that area will admit it? It is a pertinent question at a time when, although we would not go so far as to suggest investing in fixed income is like picking up pennies in front of a steamroller, it is only a matter of time before UK interest rates start to rise from their 300-year lows.
18 Jul 2014
Here on The Value Perspective, we enjoy chatting about house prices as much as the next person although, when the subject does inevitably crop up at a dinner party, we are usually to be found approaching things from a completely different angle to the other guests. When it comes to buying and selling houses, it seems, there are some psychological hurdles people find tricky to clear.
17 Jul 2014
In a world where many people continue to view volatility solely as a negative, it isn’t overly surprising that companies continue to look for ways to carve out assets with more predictable cashflows and sell them to those willing to pay through the nose for sort of thing. Opco-propco structures were the fashion in the UK pub and hotels sector prior to the financial crisis, but the breadth of industries getting involved is increasing such that the low volatility vehicle now has a different generic name. Step forward and take your bow, the ‘yieldco’.
16 Jul 2014
In recent pieces such as Long-term cares, and Sale of a century, The Value Perspective has raised a metaphorical eyebrow about the way some investors seem to be weighing the balance between risk and reward. This time, however, we will let one picture replace 1,000 words on how the market would appear to have become less discerning than it used to be.
11 Jul 2014
Long-term bond returns under duration targeting is the name of a paper published earlier this year in the Financial Analysts Journal that recently caught the eye of The Value Perspective. Honestly. To its credit, it makes greater use of real-world data than many of the magazine’s offerings but it is still pretty heavy on formulae and Greek letters.
9 Jul 2014
Should you have experienced a strong sense of déjà vu about the way AstraZeneca set about fending off what it clearly saw as the unwelcome advances of fellow pharmaceutical giant Pfizer, it may not have been solely down to Astra’s basic strategy resembling that of any other business looking to avoid a corporate predator – ‘Just look at the golden future we will enjoy if left to our own devices’.