The Global Value approach invests in the stocks of financially sound but out-of-favor companies that provide above-average total return potential and generally sell at below-average price/earnings multiples. Investment decisions are based on detailed, in-house, fundamental research and security valuations.
What Is the Investment Philosophy and Approach?
Our investment philosophy is that stock markets are hyper-efficient at times, overreacting to both positive and negative information in the short term and thus creating opportunities for long-term investors. We utilize a contrarian approach focused on longer-term fundamentals.
By focusing on solid companies that we believe are only temporarily out-of-favor, we expect this "value gap" (better growth and higher yield at a discount to the market) to narrow over time and enhance our opportunity to outperform the market. Our substantial investment in global research resources and the disciplines of our investment process underlie our ability to understand companies and their respective global industries, and to add value by discerning temporary events from permanent reductions in value.
What Is the Investment Universe?
Because we are experienced value investors supported by a deep team of global industry analysts, the scope of our investment universe is broad. We primarily evaluate large-cap companies in developed markets, as well as global companies in emerging markets.