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.
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’.
4 Jul 2014
As we reach the business end of the 2014 World Cup, with all four quarter-finals taking place over the next couple of days, the obvious question has to be: what useful value-oriented lessons might we learn from the tournament? And the equally obvious answer has to be: none – or at least none yet, because useful value lessons tend to take a good deal longer than a fortnight to become fully formed.
3 Jul 2014
What are investors looking for from an absolute return fund? Clearly the answer will vary from person to person and yet, here on The Value Perspective, we feel we are at least on safe ground in suggesting that what investors are very much not looking for from an absolute return fund is holdings that have a more than 90% correlation with those of funds in the UK All Companies sector.
2 Jul 2014
Various questions leapt to mind as The Value Perspective caught up with a Bloomberg report that the Mexican government had sold £1bn of fixed income securities due to mature a century from now – in March 2114. Why, for one thing, would Mexico want to denominate a bond in sterling? Surely its own currency or, failing that, the currency of its northern neighbour would make more sense?
27 Jun 2014
Here on The Value Perspective, we will often use quotes from other people because, while it may hurt a little to admit it directly, we ultimately understand we do not have a monopoly on keen insights into the world of investment. We also understand that when you use someone else’s quote, it is important to put a bit of thought into what it is they actually meant by it.
24 Jun 2014
Professional investors are forever on the lookout for evidence to help support the idea that what they – OK, we – do for a living is a lot more science than art. Anything seen to add more sophistication to how we think about our particular area of expertise is seized upon gratefully, which is why the notion two different sets of data might have a deeper relationship can be so seductive – and so dangerous.