The Value Perspective

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.

The Value Perspective News

  • Star quality – Focus your attentions on a fund’s process, not its manager

    NEW
    Star quality – Focus your attentions on a fund’s process, not its manager

    Kevin Murphy

    21 Nov 2014

    Whenever a high-profile fund manager leaves their job, the chances are it will provoke a flurry of media comment on whether investors would do better to stick with the fund or follow the manager – or, as The Clash might put it, should you stay or should you go? So it has proved after an eventful few weeks of managerial comings and goings that included the exit of ‘Bond King’ Bill Gross from Pimco.

  • Pattern of behaviour – The longer the time periods used, the more value reveals its strengths

    NEW
    Pattern of behaviour – The longer the time periods used, the more value reveals its strengths

    Nick Kirrage

    20 Nov 2014

    Every few years, The Value Perspective undertakes a fund ‘health check’ by reviewing the last decades’ worth of performance numbers for the portfolios we run. What we are hoping to see from the data is not that it exactly mirrors any particular previous time periods but that the pattern of the returns being generated looks very similar.

  • Don’t blame it on Rio – Glencore may turn out to be fortunate it had its advances rebuffed

    Don’t blame it on Rio – Glencore may turn out to be fortunate it had its advances rebuffed

    Ian Kelly

    19 Nov 2014

    The enthusiasm that greeted rumours of a takeover bid by Glencore for Rio Tinto to create a £100bn mining and commodities-trading giant was in no way dampened by the sector’s current poor health. At The Value Perspective, our shopping list of stocks often contains some of the worst-returning share prices over the past quarter or year. That being the case, the table below might suggest base metals mining stocks should be piled high in our investments, but they are not. Why is that?

  • Marriage guidance – Weddings and portfolios can both end up focusing on the wrong things

    Marriage guidance – Weddings and portfolios can both end up focusing on the wrong things

    Ian Kelly

    14 Nov 2014

    Diamonds – as any James Bond fan will tell you – may be forever but, if you want your marriage to be remotely durable, you would do well to keep diamonds or indeed anything much in the way of expense out of the equation. That, at least, is the conclusion arrived at by the US economists Andrew Francis and Hugo Mialon in their recent paper A diamond is forever and other fairy tales.

  • Your starter for tenure – How important is a manager’s experience in fund selection?

    Your starter for tenure – How important is a manager’s experience in fund selection?

    Nick Kirrage

    13 Nov 2014

    When it comes to evaluating funds, just how important a consideration is fund manager tenure – that is to say, the length of time somebody has been at the helm of a particular portfolio? It is a question that crops up with a fair degree of frequency – including at a recent investment conference organised by Citywire and at which we were speaking.

  • Short notice – The fundamentals of shorting on valuation are less sound than when going long

    Short notice – The fundamentals of shorting on valuation are less sound than when going long

    Jamie Lowry

    11 Nov 2014

    In recent months, The Value Perspective has found a few different ways to look at the idea of ‘shorting’ – that is, seeking to profit from the failure of a business or a decline in its share price. These have included the apparent reluctance of hedge funds to short at present (Short change) and the sort of lessons other investors can learn from short-sellers (Short shift).

  • Behavioural swine-ance – What ‘The Learned Pig’ can teach us about human instincts

    Behavioural swine-ance – What ‘The Learned Pig’ can teach us about human instincts

    Andrew Lyddon

    6 Nov 2014

    Over the years, our holiday reading has taken The Value Perspective down many different roads although these have always tended to lead back to the comforting embrace of value investing. Our latest trip to warmer climes proved no different as, through Jan Bondeson’s intriguingly titled ‘Animal Freaks’ , we became acquainted with the learned pig craze of the 1780s and the animal that started it all off.

  • Rain or shine – The value of a forecast may lie in looking back and seeing where you went wrong

    Rain or shine – The value of a forecast may lie in looking back and seeing where you went wrong

    Ian Kelly

    4 Nov 2014

    The economist Kenneth Arrow spent the Second World War as a weather officer in the US Air Force. Given the job of making long-term weather forecasts, he and his team soon arrived at the conclusion that their predictions were no more accurate than pulling random numbers out of a hat and so they sent a request to their superior officers to see if they could be relieved of the task.

  • Cut and thrust – Dividend cuts may reflect past mistakes but also future growth potential

    Cut and thrust – Dividend cuts may reflect past mistakes but also future growth potential

    Nick Kirrage

    31 Oct 2014

    It goes without saying that dividend yield is an important consideration for income-hungry investors but so too is dividend growth. After all, a dividend payment that does not grow over time and therefore cannot keep up with inflation – or preferably outpace it on a consistent basis – will soon enough be of limited value to anyone.

  • One size fits all – The underlying dynamics of retail apply no matter what you sell

    One size fits all – The underlying dynamics of retail apply no matter what you sell

    Andrew Lyddon

    30 Oct 2014

    The recent travails of Mulberry, which culminated in the UK-based luxury goods company issuing a profit warning on 14 October, led us to revisit Spot the difference, an article written by The Value Perspective back in June 2012, which compared and contrasted the attractions of the then market darling with electrical retailer Kesa, now known as Darty.

Email updates

Sign-up to receive weekly updates from the team.

Sign up for updates