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Value Partners employs a bottom-up approach to stock selection, which is research intensive, risk averse and contrarian.
Investing in business, not stocks
As true value investors, our fund managers consider themselves business analysts first and foremost, as we view each investment as purchase of a business rather than stock. This approach requires our investment team to gain in-depth firsthand knowledge of the companies they invest in through site visits, face-to-face meetings with management, and engagement with customers, suppliers and other stakeholders.
In 2007, our investment team made around 2,500 company visits.
Taking a prudent first approach
The central tenet of value investing is capital preservation. We aim to minimize investment risk by avoiding market fads and making investments with a high margin of safety. This means identifying companies with quality earnings and management trading at bargain prices. This approach has helped avoid the damage done by the collapse of the dot-com bubble in 1999.
Successful practitioners of value investing often requires practitioners to have the courage of their convictions to go against the flow. At Value Partners, we encourage fund managers to be contrarian and seek out value-driven investment opportunities among little known and out-of-favour stocks and investment sectors. |
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