Content Library

UK brickmaker Ibstock is in the midst of a multi-year, powerful earnings recovery, in our view, and we believe investors are underestimating how well positioned the company is for an anticipated turn in the UK housing cycle.

Three votes from the 2024 proxy season illustrate our approach to active stewardship.

For Bargains, Investors Should Look to Emerging Markets

International small-cap stocks are attractively valued and have historically generated better returns than large caps.

China recently announced several stimulus measures, mostly targeting the beleaguered property sector, which have been interpreted positively by investors.

While US and non-US equities are priced much differently today, non-US equities have the same historical return on equity and slightly lower historical revenue growth when compared to the US market.

US small caps are trading at their cheapest valuations relative to large caps in nearly twenty-four years, resulting in what we believe is a unique opportunity for investors to boost exposure to financially stable, small cap value stocks, that are projected to grow earnings at a faster rate than their large cap peers.

Many investors opt for "value-light" strategies that sacrifice key value principles. This essay demonstrates value investing’s superior returns compared to growth and value- light strategies, dispels risk misconceptions, and exposes the flaws of indexing value.

The mainstream energy transition narrative has evolved in light of recent social, political, and economic shifts. Our approach to researching and analyzing our investments has remained consistent, as we continue to dynamically analyze the credibility of company transition plans. (July 2024)

We believe Humana is among the best-positioned managed care organization to capitalize on the long-term structural growth of Medicare Advantage enrollment given management’s renewed focus on profitability over growth at any cost.

Despite two years of strong performance, the MSCI Brazil Index continues to trade below its pre-COVID level. Asset quality has remained strong, and we view the current valuation as compelling.

We believe the market is overlooking Hong Kong-based WH Group’s high-cash-generating core business, focusing instead on far less material, and likely transitory, headwinds, thereby resulting in a compelling valuation.

We believe the material valuation discount for Baxter International, a vital supplier of medical products and devices, is unjustified.

Despite the strong performance of international equities in 2023, the valuation disparity between US and non-US equities remains wide.

We maintain high conviction in our financial holdings despite the macroeconomic challenges facing the sector.

This case study explores the hidden social (and ultimately financial) costs related to the mining of cobalt, a critical component of EV batteries.

We believe the businesses we own are well-positioned for the global energy transition, as the world gradually shifts away from carbon-intensive fuels towards cleaner energy sources.

Global small-cap stocks are attractively valued and we believe it is an especially attractive time for global small-cap value.

A valuation-based approach has worked better in emerging markets than the developed world.

Value investing has proven to be an extremely reliable approach, outperforming 78% of the time based on rolling five-year periods since 1992.

As global stock markets enter bear market territory we examine how equity markets perform around recessions.

With looming uncertainty in the US, market drawdowns have entered bear market territory.

Geopolitical shocks have usually been short-term in nature. We believe fundamentals for an enduring value cycle remain intact.

International small capitalization stocks warrant further attention from investors seeking a diversifying and distinctive asset class with superior return potential.

Using basic investing arithmetic, we can estimate the macro and company forecasts necessary to yield market-like returns over the next decade.

Uncertainty creates value opportunities in emerging markets. Severe underperformance by specific emerging-market countries has historically created fertile hunting ground for alpha generation.

Our research shows typical trends during the early stage of this value rotation. After an impressive rebound from pandemic lows, the rally took a pause this summer.

It’s important to stay focused on the long-term facts. International (ex-US) value beats the market and deep value stands alone at the top, time and again.

With valuation spreads in non-US markets remaining near all-time highs, we believe deep value stocks offer an excellent risk/reward profile.

As economies gradually reopen, valuations look favorable in emerging markets relative to the rest of the world.

Valuation spreads between the cheapest and most expensive stocks are at or near all-time highs.

Inflation, its effect on the market, and its implications for our portfolios have been frequent topics in recent client conversations.

Being in the value index doesn't necessarily make it a true value investment. Indices don't consistently differentiate between value and growth styles.

There is a stronger relationship between investment performance and a company’s potential for ESG improvement as compared to the company’s ESG score.

Value in emerging markets has produced superior returns to growth over time and better relative returns vs. developed markets.

Value has recently trounced the broader stock market, and we believe there may be plenty of support for the value rally to continue.

Oil and gas companies can continue to thrive as the world moves toward decarbonization and the expansion of renewables.

Value is finally starting to outperform, with deep value leading the way. But the opportunity is far from behind us.

At current valuations, banks in the emerging world present compellingly asymmetric investment opportunities.

Conventional wisdom says technological innovation hurts existing franchises. Yet strong incumbents adapt.

Another potential catalyst for the shift from growth to value: (Irrationally) exuberant growth expectations revert to normal.

If interest rates stop falling (even if they don't rise), we believe multiple expansion for growth stocks will end.

Value stocks have historically outperformed on average both during and subsequent to a recession.

Consider these four possible catalysts that could already be signaling a shift from growth to value.

Small cap stocks are cheap; small cap value is even cheaper.

How should we measure risk? We question short-term volatility as a proxy for long-term risk.

Against the volatile backdrop of today’s economic environment, bank stocks stand out.

Difficult market environments = fuel for value investors.

History suggests that in times of uncertainty, investing in undervalued companies pays off long term.

Extreme volatility has historically been conducive to small cap value outperformance.

Rich Pzena discusses the difference between the value factor and value investing as a philosophy.

Following each of the last five bear markets, value stocks outperformed one year from the trough.

In the midst of heightened investor fears, it's helpful to examine the historical context of recoveries.