A couple of weeks ago our CIO, Mikael Löfberg, contributed to the Citywire article: US value rises from the ashes.
Read more about his thoughts on the matter here or below.
The US has become the go-to-place for growth among equity investors, but which value managers or strategies have been able to stand out from the crowd? Are there any value-orientated investors you are either watching or have invested with in recent times?
Mikael Löfberg, CapMan Wealth Services, Finland
“Last autumn we decided to systematically analyse and interview potential value and quality managers in the US and globally. The Guinness Global Equity Income fund is our top pick globally.
Our aim was to provide diversification and reduce overlap with the more growth-oriented managers. It was an interesting exercise, as we discovered that several ‘outperformers’ had moved a bit too much on the growth side, so understanding style drift and position-level drivers became essential to the task.
The latest among these funds to catch our interest is the Snyder Capital US Concentrated All-Cap Value Equity fund (UCITS launch). The 100% employee-owned firm was founded by Alan Snyder in 1984 in San Francisco. The team look for quality and value in areas often overlooked by others. They specifically want their companies to be under the radar and less glamorous or even surrounded by some form of misperception. The rigorous fundamental research and modelling out downside risks has paid off in the form of a solid capture ratio against any relevant benchmark or peer group. The portfolio is very concentrated, but well diversified between about 20-30 stocks.”