Deep Value Investing - Beyond Buffet (w/ Tobias Carlisle & Chris Cole)

TL;DR

Reviving traditional value investing through quantitative research for the Acquirers Fund.

Transcript

I think one of the most interesting things about your research is that you have there's so many individuals that follow the value investing framework and I think everyone's knowledgeable with a canon of material out there securities analysis Benjamin Graham but you've added some new twists to that through quantitative research and I'm wanting to ta... Read More

Key Insights

• 👨‍🔬 Traditional value investing principles are revived through quantitative research.
• 💪 Acquirers Fund focuses on buying undervalued assets with strong balance sheets and growth potential.
• 💔 Short positions target overvalued companies with financial distress and broken momentum.
• 👨‍🔬 Quantitative research guides the fund's investment strategies.
• 🥶 Stock buybacks serve as a signal of genuine free cash flow and value.
• 📼 Deep value investing involves buying assets at a discount to intrinsic value.
• 🧘 Market collapses are mitigated through short positions in the fund.

Questions & Answers

Q: How does the Acquirers Fund approach value investing differently?

The fund revives traditional value investing by using quantitative research to identify undervalued assets with strong balance sheets and growth potential, focusing on buying at a discount to intrinsic value.

Q: What is the strategy for selecting long positions in the fund?

The fund looks for undervalued companies with strong balance sheets, high free cash flow, and active stock buybacks as signals of genuine value and potential for growth.

Q: How does the fund approach short positions?

Short positions target overvalued companies with financial distress, earnings manipulation, negative free cash flow, and broken momentum, aiming to provide portfolio protection during market downturns.

Q: What role does quantitative research play in the fund's strategy?

Quantitative research is used to analyze industry and academic studies from Benjamin Graham onwards to identify successful value investing strategies and apply them to the fund's investment decisions.

Summary & Key Takeaways

• Reviving old value investing principles with a focus on buying undervalued assets.

• Using quantitative research to identify financially strong, undervalued companies.

• Fund strategy involves buying undervalued stocks with strong balance sheets and selling overvalued stocks with financial distress.