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

  • Cat and mouse - Insurance-linked securities is yet another area where value is in short supply

    NEW
    Cat and mouse - Insurance-linked securities is yet another area where value is in short supply

    Andrew Lyddon

    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.

  • Cynk hole - Plenty of extreme sports already exist so there is no need to make investing one

    Cynk hole - Plenty of extreme sports already exist so there is no need to make investing one

    Jamie Lowry

    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.”

  • Blame game - Should investors ever reproach themselves for their advisers' errors?

    Blame game - Should investors ever reproach themselves for their advisers' errors?

    Ian Kelly & Nick Kirrage

    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’.

  • Slow burn - Bad decisions taken in boom times can take a surprisingly long time to unwind

    Slow burn - Bad decisions taken in boom times can take a surprisingly long time to unwind

    Andrew Lyddon

    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.

  • Not so sweet - What should fund managers tell clients if their asset class gets really expensive?

    Not so sweet - What should fund managers tell clients if their asset class gets really expensive?

    Nick Kirrage

    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.

  • Home truths – Next time house prices crop up at a dinner party, take a value perspective

    Home truths – Next time house prices crop up at a dinner party, take a value perspective

    Nick Kirrage

    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.

  • Smooth operators? – Can so-called ‘yieldcos’ follow through on the quiet life they promise?

    Smooth operators? – Can so-called ‘yieldcos’ follow through on the quiet life they promise?

    Andrew Lyddon

    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’.

  • Balancing lacked - Bond investors may need to think harder about the risk-reward equation

    Balancing lacked - Bond investors may need to think harder about the risk-reward equation

    Ian Kelly

    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.

  • Long-term cares – A new paper suggests bond investors need to be careful reaching for yield

    Long-term cares – A new paper suggests bond investors need to be careful reaching for yield

    Ian Kelly

    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.

  • Pipe dreams - Talking up the price of your business can be dangerous if it does not get paid

    Pipe dreams - Talking up the price of your business can be dangerous if it does not get paid

    Ian Kelly

    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’.

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