The Value Perspective
The Value Perspective is an extensive resource for providing information on 'value investing' in UK equities. Value investing is a proven, long-term approach which focuses on exploiting swings in stockmarket sentiment, targeting companies which are valued at less than their true worth and waiting for a correction. We aims to share the thoughts, opinions and passions of three experts in this field, along with independent commentators, providing greater insight into this often poorly understood area of UK equity investing.
The Value Perspective News
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NEWPlease release me21 Feb 2012
Retailers will boost margins if they can only renegotiate unfavourable leases.
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Devil in the detail
20 Feb 2012
Income investors should cast their nets widely in the hunt for dividend payers.
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Profits without honour - The market hunts for growth but it can be blind to other considerations
10 Feb 2012
Can you name the three largest non-food retailers in the UK by market capitalisation? B&Q owner Kingfisher, Marks & Spencer and Next? Very good - now how about the fourth largest? No, it is not Home Retail Group, Dixons, Mothercare, French Connection or even Debenhams - all those big, well-established brands are still smaller than relative newcomer Asos, which has a market cap of £1.3bn.
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Deficit attention disorder - investors should not necessarily be put off by pension fund deficits
7 Feb 2012
Pension fund deficits have been back in the news again. The latest figures from the Pension Protection Fund showed the collective deficit of private sector final-salary pension schemes in the UK had again hit a record high while a survey of more than 200 schemes by consultant Aon Hewitt found almost 70% were looking to take less or no risk with both their assets and their liabilities.
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Correlationship counselling - the market cannot ignore company fundamentals indefinitely
6 Feb 2012
In Uncertainty principle and Safety at any price, we observed how correlations between and within asset classes - that is to say, the way investments move in relation to each other - are at all-time high. Further evidence of this can be found in the recent behaviour of the S&P 500.
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Snap! - yields and total returns from equities can only move in opposite directions for so long
2 Feb 2012
Over the course of 2011, company dividends across the UK market - if one excludes special payments and the distorting effects of BP's return to the register - rose by about 12% and yet the market fell 8%. Despite this rise you need to remember that past performance is not a guide to future performance and may not be repeated. When dividends head so decisively in one direction and share prices in the other, that is evidently telling us something. What exactly?
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Safety at any price - an investor who pays too much for stability, risks looking like a 'Saap'
1 Feb 2012
In Uncertainty principle, we looked at how investors are seeking stability in an unstable world and often instinctively - though, in our view, mistakenly - choosing bonds over equities. This argument can be taken a step further with the suggestion this flawed logic is happening not just across but also within asset classes.
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Uncertainty principle - investors now need to be very clear about why they are buying bonds
31 Jan 2012
Anyone looking for some light relief as the winter drags on would do well to avoid global economic headlines. To pick out a few concerns at random, there is the future of the euro, the potential for inflation, the pace of Chinese growth, the indebtedness of governments and consumers and the impact of austerity measures on countries' populations. Not many laughs to be had there.
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Repeat after me - a successful investment process is pointless unless it is demonstrably replicable
27 Jan 2012
Moneyball: The Art of Winning an Unfair Game is a 2003 book by Michael Lewis - and now a film starring Brad Pitt - that charts the phenomenal rise of the underdog Oakland A's baseball side under the management of Billy Beane, the pioneer of an analytical and statistics-based approach to building a competitive team known as 'Sabermetrics'. It has nothing and everything to do with investing.
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Cycle path - Tesco's recent fortunes illustrate how, like economies, companies move cyclically
26 Jan 2012
We have discussed in the past how the broader economy moves in cycles - and how value investing looks to exploit how the market responds to different points within those cycles. However, the recent profit warning issued by supermarket giant Tesco illustrates how individual industries and even individual companies can have cycles of their own.
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The views and opinions displayed on this website are those of Kevin Murphy, Nick Kirrage and Andrew Lyddon, members of the Schroder UK Specialist Value Team (the Value Perspective Team), and other independent commentators where stated. They do not necessarily represent views expressed or reflected in other Schroders' communications, strategies or funds. The Team has expressed its own views and opinions on this website and these may change. This item is intended to be for information purposes only and it is not intended as promotional material in any respect. Reliance should not be placed on the views and information on the website when taking individual investment and/or strategic decisions.
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© Copyright 2012